Kakamega judge rules to hear Mumias Sugar case

Entrance gate at Mumias sugar company. PHOTO | ISAAC WALE | NMG

By SAM KIPLAGAT
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Summary

• Kakamega resident judge William Musyoka said he will hear all parties and make his determination after the county insisted that agriculture is a devolved function.

A case filed by the Kakamega County government seeking to allow a Uganda-based company to continue with revival plans of Mumias Sugar Company will proceed to a full hearing after a judge declined to strike it out on the grounds that it lacked jurisdiction.

Kakamega resident judge William Musyoka said he will hear all parties and make his determination after the county insisted that agriculture is a devolved function.

Through senior counsel James Orengo, the county government wants the court to stop interference with the lease granted to Sarai Group, arguing that it would lose revenue if the court does not intervene.

Tumaz and Tumaz Enterprises, which placed a bid of Sh27.6 billion for the lease of the ailing miller for 20 years, obtained orders at the High Court in Nairobi to stop the operations at Mumias pending the determination of its case.

The company accused administrator PVR Rao of failing to subject the leasing transparently and that the process was marred with irregularities.

Tumaz and Tumaz had argued that the Kakamega court lacks jurisdiction and that a similar case was pending before the High Court in Nairobi.

The county government, on its part, said Sarrai Group took over the operations on December 22 and was already on the ground when the court stopped the revival plans on December 29.

Mr Orengo said Tumaz and Tumaz has not demonstrated its stake in Mumias or the leasehold even though the firm has sought to block the reopening of the ailing miller.

Read: Judge declines to allow Sarrai Group resume Mumias operations

“Whilst the 1st defendant (Tumaz) has not brought to the court evidence of the damage that it will suffer if the interest party continues operationalising the leasehold.

“The stay of the leasehold will lead to massive loss of revenue for the plaintiff and financial loss for the interested party who has contracted other third parties to carry out the revival plans of the company and is further exposed to legal action by the said parties due to the stay,” Kakamega says in the petition.

Another case filed by five suppliers and shareholders of Mumias is partly heard before Justice Alfred Mabeya, while another one is pending ruling before Justice Anthony Ndungu on March 3, all in Nairobi.

Also read: Kakamega claims West Kenya losses in Mumias Sugar lease fight