Business

Three more firms seek to join Mumias Sugar legal battle

Wednesday, January 26th, 2022 11:35 | By
Mumias Sugar staff want Sarrai Group out
Mumias Sugar revival. Photo/Courtesy

Three more companies now want to be enjoined in the Mumias Sugar lease legal battle, with West Kenya Sugar Company now claiming to have been the highest bidder.

West Kenya, Mumias Outgrowers Company Ltd and Tumaz Tumaz Enterprises have filed an application to be enjoined in the suit filed by five farmers, saying it will affect them.

The farmers are Lambert Lwanga Ogochi, Augustino Ochacha Saba, Prisca Okwanko Ochacha, Robert Mudinyu Magero and Wycliffe Barasa Ng’onga.

They obtained orders on January 14, stopping any operations at the sugar milling plant after they challenged the lease on the basis that it was undertaken in an opaque manner.

Gakwamba Farmers Co-operative Society also filed to enjoined last week claiming the five farmers were unknown to them and therefore did not have authority to file the suit.

The society dragged West Kenya Company in the lease saga claiming it was the one sponsoring the farmers with a purpose of interfering with the operations of Mumias Sugar.

Through lawyer Danstan Omari, the society argued that the application was an abuse of the court process and should be dismissed.

“We are the farmers to Mumias Sugar Company, we don’t know anything about this suit neither do we have any minute passing any resolution to institute any suit,” read court papers.

West Kenya, however, in their application to be enjoined in the case, faulted the bidding process, saying it was not fair as they were the highest bidder and the Ugandan firm Sarrai Group, which was awarded the tender was the lowest bidder.

“We will be seeking an explanation from the Receiver Manager and KCB on the bidding process,” lawyer Paul Muite, who represents the factory, told the court yesterday.

West Kenya contends that the Receiver Manager Ponangipali Rao action of awarding the lease to the 6th defendant despite it being the lowest financial bidder, was pre-determined and said action is unconscionable.

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