Court suspends controversial rice tender, stops importation amid dispute

The High Court in Mombasa has temporarily stopped a State agency from importing 250,000 metric tonnes of grade one rice over a tendering dispute with 17 rice importers. Justice Jairus Ngaah stopped the Agriculture and Food Authority (AFA) and its agencies from allocating the said tender to any private individual. AFA cancelled a tender awarded by Kenya National Trading Corporation (KNTC) to 17 companies that had successfully bid to import the said rice and proceeded to award a single firm. The judge suspended the decision of AFA dated September 10, 2025, purporting to revoke the allocation made to the KNTC vide a letter dated July 29, 2025. The judge also suspended the tender awarded by KNTC on September 9, 2025. "The Agriculture and Food Authority (AFA), whether by itself, its agents, servants, or assigns, is hereby restrained from issuing, reallocating, or otherwise purporting to allocate the 250,000 MT rice importation quota to any private individuals or entities outside of the lawful tender process conducted by KNTC pursuant to Gazette Notice No. 10353 of 28th July 2025 and the Court ruling of 19th August 2025," said Justice Ngaah. Two businessmen, Ibrahim Mohamed and Abdiaziz Noor, filed a certificate of urgency seeking to stop the tendering process by AFA over what they called clandestine reallocation to undisclosed private entities. The two sued AFA, KNTC, CS Agriculture, CS Trade, CS Treasury, Kenya Revenue Authority (KRA), Commissioner Customs and Border Control Department and the Attorney General (AG). The 17 companies were cited as interested parties to the petition, having been among the successful bidders whose tenders were cancelled by KTNC. KNTC informed the 17 successful bidders that a different company will undertake the importation of the rice. The successful bidders allege the company that was awarded the whole tender was never among those invited to bid. KNTC had invited 60 qualified importers to bid for the tender, but only 17 were successful. The businessmen, through their lawyer Abdullahi Yussuf, said that on September 10, 2025, AFA unlawfully revoked the tender allocation by KNTC, which led to the cancellation of the tender they won after a competitive bidding on September 17, 2025. Yussuf said that the tender cancellation exposed the process to clandestine reallocation to undisclosed private entities. The lawyer said that KNTC conducted a competitive tender process culminating in awards to 17 successful bidders on September 9, 2025. Yussuf said that unless conservatory orders are issued urgently, the entire 250,000 MT quota risks being irregularly reallocated before the deadline of October 31, 2025, thereby rendering their petition nugatory, undermining lawful court orders, and prejudicing the public interest in food safety, transparency, and fair competition. Justice Ngaah certified the matter as urgent and directed the parties to file responses before the next mention date of October 23, 2025. "I have considered the notice of motion dated September 22, 2025, filed under a certificate of urgency of even date. I am satisfied that the application is urgent, and it is so certified," said Justice Ngaaah. While granting the conservatory orders, Justice Ngaah said the impugned actions by AFA may frustrate or compromise the court's orders. "In the meantime, in order to preserve the substratum of the petition, and to the extent that the respondents' impugned actions may frustrate or compromise the effect of the order of this Honourable Court sitting at Kerugoya in High Court Petition Number E 009 of 2025, conservatory orders pending the hearing of the application or until such further orders are made by this Honourable Court are hereby granted," said Justice Ngaah. Among those aggrieved by the cancellation are Pakistani rice exporters. The Pakistani High Commission wrote to KNTC days after the cancellation of the tender and requested clarification on how to best proceed. "The High Commissioner further seeks clarification on the specific procedures and guidelines governing the issuance and administration of this quota to enable Pakistani exporters to engage with the Kenyan market with confidence and clarity," read the High Commissioner letter dated September 12 to KNTC. KNTC was originally expected to import 500,000 tonnes of grade one rice, but the same was challenged in court by farmers from Kerugoya, and Justice Edward Muriithi allowed for the importation of 250,000 MT. On August 19, 2025, the High Court in Kerugoya limited the importation of the said rice to 250,000 MT that is expected by October 31, 2025.

Court suspends controversial rice tender, stops importation amid dispute

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