Milimani commercial court consolidates Mumias suits » Capital News

NAIROBI, Kenya, Mar 3 – The Commercial Division of the High Court in Nairobi has consolidated multiple suits filed in different courts contesting the award of a lease for the operation of the Kakamega-based Mumias Sugar Company.

The decision was made on Thursday when a case filed by Tumaz and Tumaz Enterprises was referred to Justice Alfred Mabeya.

Justice Anthony Ndung’u ruled that the suit filed against Uganda firm Sarrai Group and Mumias receiver manager PVR RAO should be heard at the High Court’s commercial section under Justice Mabeya.

Justice Mabeya has been presiding over a similar case filed by five Mumias Sugar farmers against Rao, Sarrai Group and others.

Tumaz and Tumaz which was one of the bidders in the Mumias lease tender was enjoined in the Case by Justice Mabeya, together with the farmers and West Kenya Sugar Company which had also placed a bid.

The presiding judge noted that various High Courts could not claim jurisdiction on the matter at the same time.

While presenting their arguments, the farmers argued that Rao awarded the lease to the lowest bidder – Uganda’s Sarrai Group — for Sh5.8 billion in an opaque manner.

Tumaz accused Rao of conducting the bidding process with fraud, mistakes and illegalities.

West Kenya through lawyer Paul Muite wanted Rao to explain why the lease was awarded to the lowest bidder, Sarrai Group.

In its replying affidavit to court, the Competition Authority of Kenya said that they had not received a lease from neither Rao nor Sarrai Group for approval as required by law.

The Attorney General filed its papers in support of the farmers and the bidders in the same case.

The court issued orders in January suspending the lease award to Sarrai Group until the farmers’ case is heard and determined.