Farmers Oppose Stoppage of Mumias Sugar Lease to Sarai:

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Farmers Oppose Stoppage of Mumias Sugar Lease to Sarai:

Petitioners opposing the leasing of Mumias Sugar Company Limited, led by West Kenya Sugar Company, have termed the process a fraud. 

West Kenya lawyer Paul Muite argued that the process of appointing a receiver-manager was a well-calculated fraud of KSh 30 billion between Rao Ramana and Uganda-based Sarai Group limited. 

Appearing before Justice Alfred Mabeya, Muite faulted the Rao for claiming that West Kenya, the highest bidder who offered KSh 36 billion, lacked the capacity to revive and run debt-ridden Mumias Sugar Company that has been under Kenya Commercial Bank (KCB).

"West Kenya was to deliver KSh 900 million upfront and additional KSh 500 million as security bond together with KSh 150 million per month instalment. So how can the receiver-manager claim he doubted our capability?" Muite posed.

The senior counsel further faulted Rao claiming that if awarded the Mumias lease, West Kenya Sugar Company would control about 50% of Kenya's sugar sector. 

In contrast, Muite said, West Kenya would only have a 21 % stake and not anything close to 50% as claimed by Rao.

‘It’s the mandate of Competitions Authority of Kenya to evaluate market performance," Muite said

West Kenya further urged the High Court to restrain from aiding illegality orchestrated by Rao, who they claim never involved the company’s shareholders in the disputed lease to Sarai.

‘As a result, Mumias Sugar Shareholders will be the biggest losers in the botched leasing process," Muite added. 

However, lawyer Danstan Omari who represents Gakwamba Farmers Cooperative Society, maintained those who went to court to stop the lease are sabotaging the economy.

"Attempts have been done to make sure Mumias Sugar doesn't become sweet again.The people who lost the bid want the farmers to suffer," Omari stated. 

The farmers' counsel termed the application for the judge's recusal from the case was meant to attack the character of the judge hearing the matter. 





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