Win for farmers, bidders as court blocks Kakamega county, Sarrai from Mumias

Sarrai Group has been barred yet again from continuing with works.

In Summary

• Justice William Musyoka gave Mumias Suga farmers a win, at least for now, after issuing the order.

• In that February 18, ruling, the judge had argued that it had the jurisdiction to hear case 001/2022 

Mumias Sugar Company entrance.
FILE Mumias Sugar Company entrance.
Image: HILTON OTENYO

Kakamega high court on Friday blocked the orders it had issued to the County Government of Kakamega on February 18, 2022, allowing the Ugandan firm Sarrai group to continue with work at Mumias sugar company.

Justice William Musyoka gave Mumias Suga farmers a win, at least for now, after issuing the order.

In that February 18, ruling, the judge had argued that it had the jurisdiction to hear case 001/2022 filed by the County Government of Kakamega.

The case was filed against one of the Mumias Sugar bidders Tumaz and Tumaz enterprises and others.

The judge went ahead to allow the Sarrai Group, which was awarded the lease to start operations pending other cases filed against the lease.

The County Government of Kakamega, represented by Lawyer James Orengo had argued that it will lose tax revenues from Mumias Sugar if Sarrai group of Uganda was not permitted to continue with its operations in Mumias.

Tumaz and Tumaz enterprises associated with Mwale City investor Julius Mwale opposed the County's application through its lawyer Nelson Havi.

Tumaz which was the highest bidder for the lease with Kshs. 27. 6 billion, according to court papers,  against Sarrai's 11.5 billion, argued that the Kakamega court lacked jurisdiction on the matter because two separate high courts in Nairobi had already issued orders suspending the Mumias lease to Sarrai group.

The Nairobi orders that suspended Mumias lease to Ugandan firm were issued by Justice Antony Ndung'u at the Judicial review section of the high court on December 29, 2021, after Tumaz sued the Mumias receiver-manager PVR Rao for conducting the bidding process with fraud, mistakes and illegalities.

More orders were issued to suspend Mumias lease after Mumias sugar farmers Lambert Lwanga Ogochi, Augustino Ochacha Saba, Prisca Okanko Ochacha, Robert Mudinyu Magero and Wycliffe Barasa Ng'onga, filed a case against Rao, Sarrai and others protesting the lease award to Ugandan firm arguing that Rao awarded the lease in an opaque manner to the lowest bidder Sarrai group for Ksh 5.8 billion without regulatory approvals.

Justice Wilfrida Okwany siding with the farmers issued the lease suspension orders on January 14th, 2022 and later extended the orders through March 14th,2022 to allow new parties to be enjoined in the suit.

In its submissions to the farmer's case at Milimani high court, the Competition Authority of Kenya revealed that both Rao and Sarrai group had not submitted a lease to them for approval as required by the law.

Furthermore, the Attorney General filed submissions in the case supporting the farmers and other bidders against Rao and Sarrai group.

The farmers want a new transparent tender process overseen by the court.

In their filing to be enjoined in the Kakamega case against the County, the farmers opposed the February 18th order issued in favour of Kakamega County and Sarrai group, arguing that the orders to the County were in conflict with high Court orders issued in Nairobi by Justice Wilfrida Okwany as the County, Sarrai and Rao are all defendants in that case and cannot obtain parallel orders on the same case.

The farmers submitted that the County Government of Kakamega was part of a conspiracy to defeat justice against them and others.

"To further demonstrate this conspiracy and an attempt to bring disrepute in the administration of justice, the parties failed to inform the court of Nairobi high court orders by Justice Wilfrida Okwany, which are in conflict with orders they were seeking," stated the farmers in their application.

"In order to avoid a situation where this honourable court appears to aid and abet a conspiracy to defeat the administration of Justice, it is critical that this application be allowed", stated the farmers. In response, Justice Musyoka stated, " to avoid conflict, the orders made first in time take precedence over the latter orders".

He proceed to issue the orders blocking the February 18th orders issued to the County Government, until the farmers' case is fully heard and determined.

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