Mahadi Energy Company Limited has filed an urgent application before the Environment and Land Court in Milimani seeking to block Shabeel Project Services Limited from evicting it from prime properties in South C, Pangani, and Mombasa Mainland North.
The company, through its Managing Director, Ibrahim Hussein Mahadi, claims that the eviction followed a controversial court order issued on October 23, 2025, which allegedly barred Mahadi Energy from interfering with Shabeel Project Services Limited’s occupation of the disputed properties. Mahadi argues that the eviction process contravenes Islamic finance principles that guided their financial dealings with a local bank.
In his affidavit, Mahadi contends that the dispute stems from a prolonged legal tussle between his firm and Shabeel Project Services Limited. He alleges that the opposing party, along with its agents and proxies, is attempting to unlawfully seize properties through fraudulent banking practices.
Mahadi explained that between 2011 and 2017, his company obtained loan facilities worth approximately Ksh631 million from Premier Bank Limited, previously known as First Community Bank Limited. The facilities were structured under Islamic finance concepts such as Murabaha (cost-plus financing) and Musharakah (joint venture), which forbid interest (Riba) and emphasise fairness, profit justification, and ethical financial dealings.
He maintains that despite making repayments in five instalments, the payments were not properly recorded by the bank, resulting in inflated and unlawful debts. According to Mahadi, the bank’s subsequent actions, including the sale of some of his properties through auctions held in August and September 2024, were illegal because the properties were not part of the charged securities.
Mahadi Energy Company argues that the eviction orders should be lifted to allow it to continue operations, as the properties in question are vital to its petroleum business. The company also points out that a related petition is still pending at the Mombasa Law Courts, and therefore, maintaining the current status is necessary until the matter is fully determined.
Justice Mohamed Kullow has certified the application as urgent, directing that it be served upon Shabeel Project Services Limited within seven days. The respondent is expected to file a replying affidavit within 14 days, after which both parties will submit written arguments. The case will be mentioned on December 8, 2025, for confirmation of submissions.
