This archive report was first published on 15 January 2022.
On January 14, the High Court in Kenya issued a significant ruling that has far-reaching implications for the revival of Mumias Sugar Company. The court has suspended any further leasing of the company's properties until a suit filed by aggrieved sugar cane farmers is heard and determined.
According to Justice Winfridah Okwany, there has been considerable interference in the company's revival since the appointment of Ugandan firm Sarrai Group as a receiver manager by the Kenya Commercial Bank. This interference has been a major concern for the farmers, who have been seeking a conservatory order to stop any further meddling by companies that lost tenders or politicians seeking to use the company for political gain.
The application was filed by Gakwamba farmers through their lawyer Danstan Omari. The matter is due for hearing on January 25.
It is worth noting that Justice Alfred Mabeya had previously allowed the appointment of an administrator/receiver to revive the company on December 19, 2021.
