High Court clears way for West Kenya's takeover of Nzoia Sugar

Nzoia Sugar factory main gate on August 30, 2023. [Benjamin Sakwa, Standard]

The High Court has dismissed a petition filed by former Kanduyi MP Athanas Wafula Wamunyinyi seeking to block the leasing of Nzoia Sugar Company to West Kenya Sugar Company, clearing the path for the firm’s Sh5.76 billion investments in the ailing miller.

Delivering the ruling virtually, Justice Lawrence Mugambi struck out the petition on grounds of res judicata, a legal doctrine barring courts from re-hearing matters already determined.

The judge found that the issues raised by Wamunyinyi, particularly on alleged lack of public participation, had been conclusively dealt with in a similar case filed earlier by Martin Nyongesa Barasa (Petition No. E065 of 2024).

“The question of public engagement in the leasing of Nzoia Sugar was heard, determined and settled. This court cannot sit on its own appeal,” ruled Justice Mugambi, adding that the process followed by the government was lawful and consistent with national values.

The petition challenged the legality of Tender No. MOALD/SDA/IT/001/2024-2025, through which the government invited bids for the long-term lease of five public sugar companies, among them Nzoia Sugar. The court found the new suit repetitive and an abuse of court process.

West Kenya Sugar Company, a subsidiary of the Rai Group, was awarded the lease as part of government reforms aimed at reviving underperforming state-owned sugar firms. The firm is expected to inject Sh5.76 billion into Nzoia Sugar’s modernization, including rehabilitation of its factory, expansion of cane development, and improvement of farmer and staff welfare.

Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe welcomed the court’s decision, reiterating government support for private-sector-led revival of the sugar industry. He praised West Kenya’s commitment to pay over 120,000 contracted farmers weekly, inject Sh7 billion annually into cane development, and ensure timely staff salaries.

“This ruling is a major boost to our efforts to make the sugar industry commercially viable again. It assures investors that policy decisions will be protected from unnecessary litigation,” said CS Kagwe.