The High Court has delivered a major boost to West Kenya Sugar Company’s Sh5.76 billion bid to revitalise Nzoia Sugar Company, after dismissing a legal challenge that had threatened to stall the long-term lease.

Justice Lawrence N. Mugambi, delivering his ruling virtually, declared that the petition lodged by former Kanduyi MP Wafula Wamunyinyi was without merit, effectively paving the way for West Kenya Sugar — a subsidiary of the Rai Group — to proceed with its ambitious investment plan.

In his decision, Justice Mugambi upheld preliminary objections raised by the State and other parties to the suit.

The judge found that Wamunyinyi’s application was res judicata, noting that the issues of public participation and legality of the lease had already been determined in a previous matter — Martin Nyongesa Barasa v Cabinet Secretary, Ministry of Agriculture & Others (Petition No. E065 of 2024).

The court’s ruling affirmed that these concerns had been conclusively addressed and could not be litigated afresh.

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The decision cements West Kenya Sugar’s control of Nzoia Sugar under the government’s broader initiative to breathe life into struggling state-owned millers through private partnerships.

The company, associated with the Rai business empire, has pledged to inject Sh5.76 billion into modernising the factory, enhancing production capacity and improving operational efficiency.

Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe recently praised West Kenya Sugar’s commitment to supporting the sector.

He highlighted the firm’s efforts, pointing out that it ensures weekly payments to more than 120,000 contracted farmers amounting to Sh14 billion each year, guarantees monthly wages for its employees, and invests Sh7 billion annually in cane development programmes.

The High Court’s endorsement secures the integrity of Tender No. MOALD/SDA/IT/001/2024-2025, which formalised the leasing arrangement.

It also facilitates the transition of Nzoia Sugar into private management, a move the government views as essential to turning around the fortunes of the sugar sector.

In tandem with this development, the State announced the release of Sh200 million to offset part of the arrears owed to sugar factory workers, bringing total payments towards settling salary dues to Sh800 million.

This ruling draws a curtain on a protracted battle that has seen the Nzoia lease plan dogged by controversy and court interventions.

The government’s decision to lease Nzoia Sugar, alongside other mills such as Chemelil, Sony, and Muhoroni, was rooted in a 2023 Cabinet resolution aimed at improving efficiency and profitability within the sugar industry.

In May 2025, Nzoia Sugar was formally leased to West Kenya Sugar for a period of 30 years.

However, the process has been marred by protests from local leaders and stakeholders.

Critics, including Western Kenya politicians like Eugene Wamalwa and Trans Nzoia Governor George Natembeya, have accused the government of flouting the constitutional requirement for public participation, citing Article 10 of the 2010 Constitution.

Their concerns focused on what they saw as a lack of transparency and the potential harm to the livelihoods of farmers and workers dependent on Nzoia.

The privatisation process had previously been halted by the courts on two occasions, in February 2024 and April 2025, over insufficient public engagement.

Nonetheless, the government proceeded, triggering legal challenges such as Wamunyinyi’s, which now stands quashed.

As Nzoia Sugar prepares for its new chapter under West Kenya Sugar’s stewardship, attention will turn to whether the promised investments translate into tangible benefits for farmers, workers, and the wider economy.