The planned leasing of Nzoia Sugar Company to West Kenya Company will proceed after the High Court dismissed a petition filed by former Kanduyi MP Wafula Wamunyinyi challenging the takeover.
The former MP had filed the petition seeking to block the leasing, citing a lack of public participation and transparency in the process.
However, in a virtual ruling, High Court Judge Lawrence Mugambi upheld preliminary objections raised by the State and other respondents, stating that Wamunyinyi's case had already been conclusively determined in a previous matter.
Justice Mugambi found that the core concerns raised in the petition, particularly the alleged lack of participation in the leasing process, had already been addressed by a petition filed by Martin Nyongesa Barasa.
That case had similarly challenged the leasing of public sugar factories and was dismissed earlier this year.
"The upshot is that the preliminary objection is upheld and the instant Petition is struck out. I make no orders as to costs," the ruling read in part.
West Kenya Sugar, part of the Rai Group, secured the lease for Nzoia Sugar under the government’s plan to revitalise state-owned millers. The company committed Ksh5.76 billion to modernise the factory and boost production.
The investment is expected to create more jobs, enhance cane delivery systems, and improve livelihoods for thousands of farmers in western Kenya.
Nzoia Sugar was among four companies that the Ministry of Agriculture had approved for leasing to private firms in a move aimed at revitalising the sector.
The others are Chemelil, Sony, and Muhoroni Sugar Companies, which have been leased to private owners for 30 years.
Following the leasing, Agriculture Cabinet Secretary Mutahi Kagwe praised West Kenya Sugar for its farmer-centric approach.
The company currently pays over 120,000 contracted farmers weekly, disbursing approximately Ksh14 billion annually, a model the ministry hopes will be replicated at Nzoia Sugar.
Additionally, West Kenya Sugar has pledged to maintain timely monthly wages for employees and invest Ksh7 billion annually in cane development initiatives.
