Operations at Nzoia Sugar /HANDOUT

The High Court has dismissed a petition 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 Sh5.76 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).

A politician, Wafula Wamunyinyi, had in early February asked the High Court to intervene and stop privatisation of the publicly owned Nzoia, Chemelil, Muhoroni and South Nyanza Sugar companies through a long-term lease.

He argued that the public ought to have been considered and involved in the decision-making process before the invitation to tender was issued.

He sued the then CS Agriculture Mithika Linturi, whom he accused of posting a tender invitation on the ministry website on January 16, asking prospective bidders to submit tenders for the leasing of the companies.

He also listed the Agriculture permanent secretary and the attorney general as the second and third respondents in the case.

“This was done abruptly without any consultation with the members of the public and unless court intervenes and hears the matter urgently, the respondents will proceed to illegally lease out public sector-owned without any public participation from the public offending the Constitution as well the principles of public procurement,’’ he said in a court filing.

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 Sh5.76 billion to modernize the factory and boost production.

Agriculture and Livestock Development CS Mutahi Kagwe recently commended West Kenya Sugar for its farmer-friendly policies, including weekly payments to over 120,000 contracted farmers, totaling Sh14 billion annually.

Other measures taken include: timely monthly wages for employees and a Sh7 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 on Thursday disbursed Sh200 million to settle part of the outstanding sugar factory workers' salaries, bringing total payments to Sh800 million.