The Lower Eastern Times Opening The Third Eye
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A salt firm based in Mombasa has been instructed by a state agency to compensate over Sh185 million for utilizing seawater in the commercial production of salt.
The Court of Appeal ruled that Krystalline Salt Limited must remunerate the Water Resource Management Authority (Warma) for extracting seawater from the creek in the Malindi area to reservoirs, then transferring it to its private land for salt extraction.
In 2017, the authority initiated legal action against the company, seeking over Sh2 billion, citing the extensive extraction of seawater for salt production.
The court reduced the amount from Sh2 billion, aligning it with the company’s reported annual salt production capacity of 350,000 tonnes, resulting in a total of Sh185,500,000.
The company utilizes solar evaporation to extract salt from seawater, employing mechanical harvesting machines at designated areas in Malindi.
The court acknowledged the agency’s obligation, under both the repealed Water Act, 2002 and the Water Act, 2016, to establish regulations governing seawater usage.
In 2007, the firm acquired Mombasa Salt Works, formerly Fundisha Salt, established by Germans in the early 1920s.
The company contested the agency’s authority to regulate seawater usage, arguing against the claimed salt production volume and asserting that water usage charges were based on flawed estimates.
The judges concluded that the firm is liable to pay Sh135,000 annually for fixed permit fees and arrears of up to Sh185,500,000, with an additional simple interest of 2 percent per month from October 1, 2013, until the settlement is complete.
