The High Court dismissed a petition by Athanas Wafula Wamunyinyi challenging the leasing of Nzoia Sugar Company.
This clears the way for West Kenya Sugar Company—a subsidiary of the Rai Group—to proceed with its Sh5.76 billion investment in the struggling miller.
In a judgment delivered virtually by Justice Lawrence Mugambi, the court upheld preliminary objections filed by the State and other parties, ruling that Wamunyinyi’s petition was res judicata (already adjudicated).
This was a relief to the government officials pushing for the leasing of the factories in the country. The court found that the issues raised—particularly the alleged lack of public participation in the leasing process—had been conclusively settled in Martin Nyongesa Barasa v Cabinet Secretary, Ministry of Agriculture & Others (Petition No. E065 of 2024).
West Kenya Sugar, part of the Rai Group, secured the lease for Nzoia Sugar under the government’s plan to revitalize state-owned millers.
The company has committed Sh5.76 billion to modernize the factory and boost production.
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe recently commended West Kenya Sugar for its farmer-friendly policies, including the weekly payments to over 120,000 contracted farmers, totaling Sh14 billion annually.
He also cited the Sh7 billion annual investment in cane development initiatives.
The court’s decision solidifies the leasing process (Tender No. MOALD/SDA/IT/001/2024-2025), ensuring Nzoia Sugar’s transition to private management under West Kenya Sugar’s stewardship.
In a related development, the government yesterday disbursed Sh200 million to settle part of the outstanding sugar factory workers salaries, bringing total payments to Sh800 million.
The issue of leasing the sugar factories to private investors has been contentious with opposition from some host communities.
There is a campaign to have those opposed to the exercise embrace it. This will see the investors pump in their money to ensure the factories are operational and pay the sugarcane farmers in the area.
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
