Human rights activist Okiya Omtatah has won a court battle that has been before the court for six years.
The activist had challenged the ownership of land registered under Nasewa Nucleus Estate in Busia county.
The 341 ha (842 acres) of land had been set aside for the construction of Busia Sugar Company but delayed due to grabbing.
Justice Samuel Mukunya ruled on July 31 that the disputed land belongs to the public.
The court revoked the title deed issued to Nasewa, reverting it to the Ministry of Lands.
The ruling means the government can proceed with the construction of Busia Sugar Company.
The proposed Busia Sugar Company was put under receivership and taken over by Mumias Sugar Company, which later sold it to Kaplony Enterprise Ltd.
Omtata sued Mumias and Busia sugar companies in 2012.
Kenya Sugar Board is expected to start the process of overseeing the development of Busia Sugar Company.
