The High Court has dismissed a petition by Wafula Wamunyinyi challenging the leasing of Nzoia Sugar Company, clearing the way for West Kenya Sugar Company; a subsidiary of the Rai Group to proceed with its Ksh 5.76 billion investment in the struggling miller.
In a judgment delivered virtually by Justice Lawrence Mugambi, the court upheld preliminary objections filed by the State and other parties, ruling that Wamunyinyi’s petition was res judicata (already adjudicated). The court found that the issues raised, particularly the alleged lack of public participation in the leasing process, had been conclusively settled in Martin Nyongesa Barasa vs Cabinet Secretary, Ministry of Agriculture & Others (Petition No. E065 of 2024).
West Kenya Sugar, part of the Rai Group, secured the lease for Nzoia Sugar under the government’s plan to revitalize state-owned millers. The company has committed Ksh 5.76 billion to modernize the factory and boost production.
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe recently commended West Kenya Sugar for its farmer-friendly policies, including: Weekly payments to over 120,000 contracted farmers, totaling Ksh 14 billion annually, timely monthly wages for employees and Ksh 7 billion annual investment in cane development initiatives.
The court’s decision solidifies the leasing process (Tender No. MOALD/SDA/IT/001/2024-2025), ensuring Nzoia Sugar’s transition to private management under West Kenya Sugar’s stewardship.
In a related development, the government Thursday disbursed Ksh 200 million to settle part of outstanding sugar factory workers salaries, bringing total payments to Ksh 800 million
