The High Court has dismissed a petition by Athanas Wafula Wamunyinyi challenging the leasing of Nzoia Sugar Company, clearing the way for West Kenya Sugar Company – a subsidiary of the Rai Group – to proceed with its Ksh5.76 billion investment in the struggling miller.
In a judgment delivered virtually by Justice Lawrence N. Mugambi, the court upheld preliminary objections filed by the State and other parties, ruling that Wamunyinyi’s petition was res judicata (already adjudicated).
The court found that the issues raised, particularly the alleged lack of public participation in the leasing process had been conclusively settled in Martin Nyongesa Barasa v Cabinet Secretary, Ministry of Agriculture & Others (Petition No. E065 of 2024).
West Kenya Sugar, part of the Rai Group, secured the lease for Nzoia Sugar under the government’s plan to revitalize state-owned millers. The company has committed Ksh5.76 billion to modernize the factory and boost production.
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe recently commended West Kenya Sugar for its farmer-friendly policies, including: Weekly payments to over 120,000 contracted farmers, totalling Ksh14 billion annually, timely monthly wages for employees, Ksh7 billion annual investment in cane development initiatives.
The court’s decision solidifies the leasing process (Tender No. MOALD/SDA/IT/001/2024-2025), ensuring Nzoia Sugar’s transition to private management under West Kenya Sugar’s stewardship.
In a related development, the government yesterday disbursed Ksh200 million to settle part of the outstanding sugar factory workers salaries, bringing total payments to Ksh800 million.
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