A High Court has extended orders barring Sarrai Group Limited from carrying out any activities in Mumias Sugar company.
The suspension is until a petition challenging its operations is heard and determined.
“Pending the delivery of the ruling on 23rd September 2022, there shall be an interim order of stay of execution of the ruling and order of the High Court,” Justice Alfred Mabeya ruled on Wednesday, June 8.
Last month, the court canceled its Mumias Sugar lease issued to the Ugandan company last December.
Judge Mabeya appointed Kereto Marima to be the new administrator.
Sarrai was ordered to immediately vacate the premises of Mumias Sugar.
The Ugandan company had already begun works and even pumped money into reviving the collapsed sugar mill
The court stopped the process after several bidders challenged the bid.
Tumaz and Tumaz enterprises, the company associated with Mwale City investor Julius Mwale is said to have topped the bids with Shs27.6 billion over a 20-year lease period, according to court papers.
The second-highest bid was Kruman Finances with Sh19.7 billion for a 25-year lease.
Transmara Group (Sarai) is alleged to have closed the top 3 bids with Sh 11.5 billion over a 20 year lease period and was awarded the tender sparking a fierce court battle.
