Mohammed Jaffer, a prominent Kenyan businessman, has long been a dominant figure in the country’s logistics and energy sectors. As the founder and chairman of MJ Group, Jaffer has built an expansive empire encompassing grain handling, liquefied petroleum gas (LPG), and real estate. However, recent investigations and court cases have cast a shadow over his business practices, revealing a series of alleged scandals that question the ethical foundations of his success.
The Rise of a Business Mogul
Jaffer’s business journey began in the late 1960s, gradually expanding into various sectors. His most notable venture, Grain Bulk Handlers Limited (GBHL), established in the early 1990s, secured exclusive rights to handle bulk grain imports at the Port of Mombasa. This monopoly lasted for over two decades, positioning Jaffer as a key player in East Africa’s food supply chain.
Monopoly Under Scrutiny
In recent years, Jaffer’s grip on the grain handling industry faced challenges. In February 2024, the Court of Appeal overturned a previous High Court decision, allowing Portside Freight Terminals to establish a competing grain handling facility at the Mombasa port. This ruling effectively ended GBHL’s 24-year monopoly, signaling a shift towards increased competition in the sector .
Allegations of Smear Campaigns
Beyond business rivalries, Jaffer has been implicated in orchestrating smear campaigns against competitors. Abubakar Ali Joho, brother to former Mombasa Governor Ali Hassan Joho, accused Jaffer of initiating a defamatory campaign to tarnish his family’s reputation. The campaign allegedly involved false accusations of drug trafficking and embezzlement, disseminated through social media and other platforms. Investigations traced these defamatory messages to Jaffer’s personal secretary, Matilda Maodo Kinzani, who now faces criminal charges under the Computer Misuse and Cybercrime Act .
Financial Controversies
Jaffer’s business dealings have also come under legal scrutiny. In 2016, the East African Development Bank sued Jaffer and associates for defaulting on a loan amounting to Ksh 464 million. The loan, initially granted to Kenya Bus Services Mombasa Limited in 1998, remained unpaid, leading to prolonged legal battles. The Court of Appeal recently ordered a fresh hearing of the case, emphasizing the need for accountability in financial dealings .
Land Acquisition Disputes
Land acquisition has been another contentious area for Jaffer. In a notable case, Miritini Free Port, a company associated with Jaffer, received Ksh 1.8 billion in compensation from the National Land Commission (NLC) for land that was allegedly acquired through fraudulent means. The High Court ruled that the compensation was unlawful, highlighting the misuse of public funds and the exploitation of legal loopholes for personal gain .
Market Manipulation in the LPG Sector
Jaffer’s influence extends to Kenya’s LPG market through his company, Pro-Gas. Allegations suggest that he leveraged political connections to stifle competition, particularly targeting Tanzanian billionaire Rostam Aziz’s Taifa Gas. Tactics reportedly included funding fake NGOs, forging environmental reports, and lobbying against regulatory approvals for competitors. These actions aimed to maintain Pro-Gas’s dominance in the market, raising concerns about fair competition and regulatory integrity .
Mohammed Jaffer’s business empire, while impressive in scale, is marred by a series of allegations ranging from monopolistic practices and smear campaigns to financial improprieties and land acquisition controversies. These issues underscore the need for robust regulatory frameworks and transparent business practices to ensure fair competition and uphold the rule of law in Kenya’s economic landscape.
Note: This article is based on publicly available information and ongoing legal proceedings. The allegations mentioned are subject to legal adjudication, and all individuals are presumed innocent until proven guilty.
