Court stops sale of five sugar firms

The High Court has suspended the intended privatisation of five sugar factories.

Justice George Odunga also stopped any further advertisement inviting investors to express their interest, pending hearing and determination of the case filed by the Transition Authority (TA).

"Pending the outcome of the matter before court, I direct that all issues touching on privatisation of the said firms be suspended," Justice Odunga said.

The judge directed that the application be served on the Privatisation Commission and the Attorney General and the matter be heard by all parties on January 19.

TA, through lawyer Steve Mogaka, moved to court seeking orders to halt the intended privatisation of Nzoia, South Nyanza, Chemeli, Muhoroni and Miwani sugar companies.

The lawyer told the court that the advertisement placed by the Privatisation Commission, which appeared in the local daily newspapers of December 8, was unprocedural and a waste of public funds.

Mr Mogaka said the advertisement was in breach of Section 35 of the Transition to Devolved Government Act and the same should be stopped to allow proper procedures to be followed.

"The formalities that should been conducted before advertisement for sale and invitation for bids have not been carried out. Therefore, such a move that comes without compliance with the mandatory provisions of the law and procurement regulations, is futile," he told the court.