Ugandan firm Sarrai group remains barred from carrying out operations at the Mumias Sugar Company.
The court upheld April 14, 2022, ruling that directed the Ugandan firm to vacate the milling company premises.
Three appellate court judges said the applicants had demonstrated an appeal will be rendered nugatory in case the execution is not stayed during the hearing of the case.
“In the upshot, the notice of motion dated 27th April 2022 is allowed to the extent only that there will be the stay of execution of the ruling dated 14th April 2022,” the judges ruled on Friday, September 23.
The three judges were J.Mohammed, S. Ole Kantai and Asike Makhandia.
The ruling now means Sarrai remains locked out of Mumias Sugar premises.
In the April ruling, the High Court judge Justice Alfred Mabeya in Nairobi cancelled the Sarrai lease to operate Mumias Sugar Company.
He ordered the firm to leave the premises and removed Ponangipali Venkata Ramana Rao as the Administrator of the company.
Mabeya further appointed Kereto Marima as the new administrator of Mumias Sugar Company
On Friday, Sarrai told the court that the revocation of the lease had far-reaching economic and social consequences for several people in the western region.
Lawyer Jackline Kimeto, who is also a creditor, however, opposed the application saying Sarrai had not approached the court with clean hands.
Kimeto argued that the Ugandan firm had all along deliberately failed to comply with several court orders.
She argued that granting the prayers sought would be used as a shield to perpetuate disobedience of court orders.
She said allowing Sarrai to re-enter Mumias and continue with activities based on a nullified lease poses more irreparable harm.
