The Milimani Commercial Court has said the case in which five farmers are challenging the leasing of Mumias Sugar Company should be determined expeditiously.
The court also has fixed the hearing of the case for four consecutive days from February 14th to February 17th.
Justice Alfred Mabeya said while giving directions on the matter that the dispute should be determined expeditiously and be resolved without further delays.
“The dispute should be determined expeditiously. It must be resolved at once without much delay,” Justice Mabeya said.
Mabeya noted that since the case by the farmers was filed in court in January 2022, several other applications have been filed by more than five interested parties.
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Other parties have also have sought to set aside the order, others seeking to be enjoined in the order while another party has filed preliminary objections to the suit.
Mabeya also allowed other parties seeking to be part of the suit to be enjoined and directed them to file their papers in three days. Mabeya also told the applicants to file responses in three days as well.
He directed the parties to file written submissions within seven days of February 7 so that when the case comes for hearing starting February 14th, the parties will be highlighting the written submissions.
Justice Wilfrida Okwany extended orders barring Sarrai Group from taking over operations of Mumias Sugar Company pending the determination of a petition filed by five farmers on January 14.
Okwany gave the farmers Prisca Ochacha, Robert Magero, Lambert Ochochi, Wycliffe Ng’ong’a and Augustino Saba more time to respond to evidence by the 10 defendants in the suit.
The 10 defendants included Sarrai Group, Kenya Commercial Bank (KCB), Mumias Sugar’s receiver-manager Ponangipalli Venkata Ramana Rao, Attorney General Kariuki Kihara, CS Agriculture Peter Munya, Kakamega County Chief Land Registrar, Capital Markets Authority, Gakwamba Farmers’ Cooperative and Competition Authority of Kenya.
Okwany also allowed West Sugar Company Limited to join the suit through Senior Counsel Paul Muite and Lawyer Martin Gitonga.
The five farmers disputed Sarrai Group’s win of the Mumias Sugar Company lease citing a flawed tendering process, marred with improprieties, fraud and corruption.
Sarrai Group on the other hand maintains the lease for operating and taking over assets of Mumias Sugar Company was proper and that the farmers have failed to produce evidence to prove that there indeed was corruption in the lease awarding process.
Sarrai Group argues that because of the orders, assets of Mumias Sugar Company are wasting away stopping its operations.
Rao said the lease was awarded to Sarrai Group because, during technical evaluation, it was noted that if West Kenya Sugar Company was awarded the lease, then Rai Group of Companies will control at least 41.95 per cent of the total sugarcane crushing capacity per day in the country.
The County Government of Kakamega, through its lawyer James Orengo raised a preliminary objection to the suit saying it is misconceived, incompetent and does not show a reasonable cause of action against the county.
Competition Authority of Kenya (CAK) denies any merger approval submissions to them as far as leasing of Mumias Sugar Company assets is concerned.
CAK considers that enough evidence that Rao blatantly disregarded and violated the law.
