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Court okays leasing of four state-owned sugar firms
The entrance to Nzoia Sugar Company in Bungoma County.
What you need to know:
- The Ministry of Agriculture had invited bids for the leasing of the public sector controlled sugar companies in January last year.
- Justice Chacha Mwita ruled that there was public participation before the advertisement and the government did not offend any law.
The High Court has cleared the way for leasing of four state-owned sugar companies after dismissing a petition challenging the process.
Justice Chacha Mwita dismissed the petition by Martin Nyongesa Barasa saying the government’s plan did not violate the constitution as alleged.
The Ministry of Agriculture had invited bids for the leasing of the public sector controlled sugar companies, in January last year but the court stopped the process pending the determination of the case.
But after hearing the case, Justice Mwita ruled that there was public participation before the advertisement and the government did not offend any law.
The judge noted that it was the public engagement that led to the recommendation that the sugar companies be leased.
“The petition is thereby dismissed for lack of merit,” said the judge.
Mr Barasa had claimed that the decision was done abruptly without any consultation with the members of the public.
He urged the court to intervene saying the government would end up illegally leasing out public controlled sugar companies without any public participation.
Mr Barasa said in a letter on January 8, 2024, about eight days before the tender was published, CS Treasury wrote a letter to the managing directors of Nzoia Sugar Company, Chemilil Sugar Company and South Nyanza Sugar Company Ltd, compelling them to pass resolutions to hand over powers to the ministry to enable them carry out the procurement of the leases for the respective companies.
Another sugar firm earmarked for sale is Muhoroni Sugar company (in receivership).
Mr Barasa said within a short-time, the boards of the respective sugar companies sent out notices of board meetings, then set down a date for the meeting between January 8 and 11, 2024 which was only three days apart.
“To the extent that the aforesaid actions by the Respondents were conducted without issuing notices, without giving reasons in writing, without according the public a right to be heard, the same breached Article 47 on the right to fair administrative action which is illegal and unconstitutional,” Mr Barasa said.