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Kenya: Sarrai’s Wings in Mumias Suit Clipped as Court Extends Interim Orders

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4 years ago

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Nairobi — Uganda’s Sarrai Group Limited has suffered yet another blow in the Mumias Sugar Company lease case after the High Court ruled that it should keep off the miller until a petition challenging its operations is heard and determined.

In a ruling on Wednesday, court further directed that the application by Sarrai and Vertox be heard together.

Both will be disposed off by way of written submissions.

Interim orders were also extended to June 8, 2022 but the same will not affect the duties of administrator in office — Rao — who is still expected to handover the administration duties to a new administrator cleared by the court.

The court will issue further direction in June 8.

In April, Sarrai Group suffered a major blow after a court cancelled its Mumias Sugar lease issued in December, 2021.

Sarrai was ordered to immediately vacate the premises of Mumias Sugar.

The Ugandan company had already began works and even pumped money into reviving the collapsed sugar mill but the court stopped the process after several bidders challenge the bid.

Justice Alfred Mabeya cancelled the lease and removed Ponangipalli Ramana Rao as the administrator.

“Accordingly, the lease made to Sarrai Group on December 22, 2021 is hereby nullified and Sarrai Group ordered to fully vacate the premises of Mumias,” the court ruled.

Judge Mabeya appointed Kereto Marima to be the new administrator of Mumias company and directed Rao to hand over within seven days.