Mahadi Oil Company files suit to prevent eviction from prime lands

Mahadi Energy Company Limited, a local oil firm, has filed an urgent suit seeking to stop Shabeel Project Services Limited from evicting it from prime properties located in South C, Pangani, and Mombasa Mainland North.

In a certificate of urgency filed at the Environment and Land Court in Milimani, the company, through its Managing Director, Ibrahim Hussein Mahadi, claims that Shabeel Project Services Limited blocked them from accessing the disputed properties following court orders issued on October 23, 2025.

According to Mahadi, the court order barred the company from interfering with Shabeel Project Services Limited’s occupation of the said properties.

Further, he argues that the eviction is being carried out in violation of Islamic finance principles.

“That the dispute before this Court is one that has a long protracted legal battle between myself and the applicant/respondent (Shabeel Project Services Limited), together with their agents, assigns and proxy companies who are attempting to rob me of my properties in a fashion that is now quite prevalent, as in banking fraud,” Mahadi states in the supporting affidavit.

“That commencing from various dates in the year 2011 up to 2017, the applicant (Mahadi) advanced loan facilities from Premier Bank Limited (an Islamic banking institution formerly known as First Community Bank Limited), totalling approximately Ksh631,558,748.00. These facilities were structured under Islamic finance principles, ostensibly following Sharia Law concepts such as Murabaha (cost-plus financing) and Musharakah (joint venture), which prohibit interest (Riba) and emphasise risk sharing, profit justification, and ethical dealings,” he adds.

Mahadi notes that the loan facilities were secured through legal charges on his properties and were repaid in five instalments. However, he claims the payments were not reflected in the bank’s statements, leading to an inflated and unjustified debt that was not compliant with Sharia principles, rendering it unlawful.

He further alleges that the properties sold in auctions on August 14 and September 4, 2024, were not part of the securities for the bank loans, terming their sale “illegal and fraudulent.”

The company now seeks to have the eviction orders lifted, arguing that the properties are crucial to its petroleum business operations and that maintaining the status quo is necessary pending the outcome of a related petition at the Mombasa Law Courts.

On Monday, October 27, 2025, Justice Mohamed Kullow certified the application as urgent and directed that it be served on Shabeel Project Services Limited within seven days.

Shabeel Project Services Limited is expected to file and serve its replying affidavit within 14 days of being served.

“The application be disposed of by way of written submissions, and the applicant is to file and serve their submissions within 7 days of service of the respondents’ replying affidavits, together with any further affidavit, if need be,” Justice Kullow directed.

The case will be mentioned on December 8, 2025, to confirm the filing of submissions.