REVIVAL PLANS

Relief for Sarrai after court issues stay order in Mumias Sugar row

A High Court ruling had ordered the operations at the sugar company to halt with immediate effect.

In Summary
  • Mumias Sugar Company has a capacity to process 8,000 tonnes of sugarcane per day and a cane growing nucleus of 4,000 hectares.
  • This makes the miller the largest in the country.
The Mumias Sugar Company in Kakamega.
MANAGEMENT: The Mumias Sugar Company in Kakamega.
Image: FILE

The Sarrai Group has gotten a reprieve after the Court of Appeal issued a stay order against a High Court ruling that had ordered the operations at Mumias Sugar Company to halt with immediate effect.

The order issued on Tuesday, June 13, by three Court of Appeal judges Mohammed Warsame, Imaana Laibuta and Kathurima M'Inoti, read in part, "there shall be a temporary order of stay of execution of the ruling and order of the High Court of Kenya at Nairobi dated 27th April 2023 and delivered on 28th April 2023 until 22nd September 2023."

The High Court had also found officials of the Ugandan-based Sarrai Group Limited in contempt of court for proceeding with operations at the troubled Mumias Sugar miller despite being ordered to stop in July last year.

Justice Dorah Chepkwony had further directed the officials of Sarrai Group to appear before the presiding Judge of the Commercial Division of the High Court on May 18 to show cause why they should not be sent to jail for contempt.

The contempt of court in this matter was about Sarrai Group undertaking operations in revival plans for Mumias Sugar Company, something sugarcane farmers across Western region had welcomed after being under the mercies of millers said to have taken advantage of the collapse of the company to manipulate them.

On May 18 this year, the matter, which appeared rushed, was reported to Justice Alfred Mabeya who said he was not conversant with the case and that Justice Chepkwony should proceed and give a ruling.

"I cannot handle this matter, I therefore direct Justice Josephine Mungare to issue a sentence on June 15 to show cause why the accused should not be improved," Justice Mabeya said.

Earlier Mumias Sugar creditor Jackline Kimeto had written to the Chief Justice Martha Koome and the Judicial Service Commission criticising the way the court had handled the lease case.

She said they had been dragged into a circus and controversy in Civil Application No E185 of 2023- Sarrai Group Limited vs Kimeto & Associates & Others.

Mumias Sugar Company, which had gone under for close to 10 years, has a capacity to process 8,000 tonnes of sugarcane per day and a cane growing nucleus of 4,000 hectares. This makes the miller the largest in the country.

Farmers have expressed satisfaction with the Court of Appeal decision to grant the Sarrai Group the stay order with a view that the pending ruling shall be in their best interest.

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