Court cases stall sugar firms lease plan
Miwani Sugar factory. The Cabinet recently approved plans to offer for sale five State-owned sugar factories, among them Miwani. Photo/FILE
Revival plans for five State-owned sugar millers are facing an indefinite delay following prolonged litigation that continues to put the scheme on the back burner.
Despite appointment of an interim management committee to oversee the long-term leases of at least 20 years, the team is yet to make any headway.
The five factories that have been put up for leasing are Chemelil, Muhoroni, Miwani, Sony and Nzoia. Agriculture and Food Authority (AFA) acting director general and secretary to the committee appointed by Agriculture Cabinet Secretary Peter Munya, Rosemary Owino has, however, expressed confidence that implementation of the programme will turn around the fortunes of the once lucrative sub-sector.
Court litigations
“Currently, there are growing court litigations against the process and we are unable to proceed,” she told the Nation. The AFA boss said they are waiting for the courts to grant them further direction before executing the mandate bestowed on them.
Kenya Union of Sugar Plantation and Allied Workers through its secretary-general, Francis Wangara while challenging the process, claimed workers had been left out of the entire process.
The High Court in Eldoret also ordered a temporary stoppage of the process in October pending the hearing and determination of a petition filed by growers under the umbrella of Nandi County Sugarcane farmers.
Apart from the two court cases, the Senate has also called for halting the process pending public participation to iron out the rough patches surrounding the move.
Leasing of Miwani Sugar Company is also in jeopardy after a Kisumu-based company laid claim to over 10,000 acres belonging to the troubled miller that was put under receivership in 2000.
