Court Orders Tycoon Jaswant Rai To Pay Butali Sugar Sh507 Million In Damages

Sugar businessman Jaswant Rai Friday suffered a heavy blow after a Nairobi court ordered his West Sugar Company to pay Butali Sugar Limited over Sh507 million in damages.

In the case, Butali Sugar Mills Limited filed a case against West Kenya Sugar and Kenya Sugar Board in 2007 over zoning.

It sought Sh590 million being losses incurred as a consequence of the unlawful interference with its business.

Read: Billionaire Jaswant Rai Seeks to Withdraw Mumias Sugar Case After Ruto Threats

Justice Alfred Mabeya said the evidence on record showed that Butali Sugar Mills Limited had proved its case on a balance of probability.

“Accordingly, on the totality of the evidence on record, the plaintiff has proved its case on a balance of probability. Judgement is entered for the plaintiff against the 1st defendant for Sh507,799,612. The 1st defendant is entitled to indemnity against the 2nd defendant to the tune of 30% on the damages,” read the court ruling.

“The sum of Sh507,799,612 shall attract interest at the rate of 12% per annum from the date of the suit until payment in full. The plaintiff will have the costs of the suit.”

Rai is facing pressure in the sugar industry he has controlled for ages. He is under pressure to remove cases he has filed in court over the control of Mumias Sugar.