Mumias Sugar suit against rival dismissed

Mumias Sugar Company (MSC) Friday lost a bid to block its competitor West Sugar Company from wooing 20,000 cane farmers it had contracted.

Court of Appeal judges Daniel Musinga, David Maraga and Gatembu Kairu dismissed the case filed by Mumias, saying the court had no powers to entertain it. They said the case could have been filed before the sugar arbitration tribunal.

Mumias lost the case in the High Court, but appealed, arguing that the court failed to appreciate that what was before it was a commercial dispute between two millers.

In the High Court, Justice Aggrey Muchelule ruled that the court could not settle disputes in the sugar industry before they are subjected to the tribunal as provided for in the repealed Sugar Act 2001. The Court of Appeal agreed with judge Muchelule.

Sometimes in 2006, Busia Sugar Company Ltd allowed MSC to deal directly with sugarcane farmers in Busia. Consequently, MSC recruited farmers in Busia sugar zone and contracted 20,000 of them. The farmers were to grow sugarcane and sell it to MSC.

However, in December 2011, West Sugar, with the County Council of Busia's permission, began buildling a weighbridge at Olepito on the Busia-Mumias Road, with the intention of buying sugarcane from Busia sugar zone.

It also started contracting farmers in the area to grow and sell to it sugarcane, which was to be weighed at the weighbridge. The weighbridge became the source of contention between the millers.