Parties back in court over Mumias Sugar receiver manager

The revival of Mumias Sugar Company will have to wait longer after High Court cancelled the lease awarded to Ugandan miller Sarrai Group.

The High Court has struck out an affidavit querying the involvement of a Dubai company in the Mumias lease battle.

Parties battling over the lease of Mumias Sugar Company yesterday clashed over whether receiver-manager Ramana Rao should be kicked out.

Law firm wants administrator removed on alleged incompetence in the leasing of miller as several parties file cases to oppose the award of contract.

Treasury has now backed Mumias Sugar Company Limited (MSCL) receiver manager Ramano Rao’s decision to hand the miller to Sarrai Group.

The High Court in Kakamega reversed orders it had issued to the County Government of Kakamega that had allowed Sarrai Group to try revive the company.

The Mumias lease suspension by the High Court in Nairobi remains in place until Justice Anthony Ndung'u rules on March 3.

They say Mumias bidder ought to have had the ability to pay rent for the 20 years. Judge told petitioners are neither bidders nor are creditors.

Competition Authority of Kenya says it is yet to receive a notification seeking its approval of Mumias Sugar Company’s lease by Ugandan miller.

Sugarcane farmers have questioned the delay by the investor who took over Mumias Sugar Company to meet them.

The former employees, living in Booker Estate in Mumias West constituency, said they will only move out after they have been paid.

West Kenya told commercial court judge Wilfrida Okwany that they deserved to take over the ailing miller having been the highest bidder.