Billionaire industrialist Jaswant Rai has withdrawn all cases at the Appeals Court challenging the lease of Mumias Sugar Company (MSC), just days after he was abducted by unknown men.
The withdrawal of the cases that have halted the reviving of the once giant sugar miller also comes days after President William Ruto threatened to take action against individuals he accused of exploiting cane farmers in the Western Region.
West Kenya Sugar, which is owned by the sugar baron, has filed three notices of withdrawal at the Court of Appeal to terminate their petitions challenging the award of Mumias to rival Sarrai Group, in a case that has stuck in court for almost two years.
The move by the billionaire who also owns Kabras Sugar comes hours after Vartox Resource Inc, a Dubai-based firm withdrew its petition at the same court where the company had also challenged the leasing of Mumias Sugar.
Mumias Sugar Company was placed in receivership in 2019 over unpaid loans owed to multiple local banks and international institutions.
A receiver manager was appointed who later awarded the lease of the miller to Uganda-based Sarrai Group who moved to the facility in December 2021.
West Kenya through their lawyers and Dubai-based Vartox Resources Inc. all opposed Sarrai’s win, which led to year-long court cases halting operations at the firm.
Rai had gone to court to object to the taking over of Mumias Sugar Company by Uganda-based Sarrai Group which is owned by his young brother Sarbi Singh Rai.
Sarrai Group had the third-highest bid of Sh11.5 billion while Rai's West Kenya offered Sh3.5 billion with steel tycoon Narendra Raval placing Sh8.4 billion.
Tumaz and Tumaz, linked to businessman Julius Mwale, had the highest big bid of Sh27.6 billion.
In their petitions, they argued that the 20-year lease of Mumias Sugar Company to the Sarrai Group was not made in a transparent manner.
It is still unclear whether the withdrawal of the cases will now allow the Ugandan millers to resume operations that were halted by subsequent court orders.
The developments come against the backdrop of President William Ruto threatening sugar tycoons of exploiting Western Kenya residents through court cases which he says have slowed the reforms in the sector.
While speaking in Kakamega on Wednesday, the President stated, "I have told them to withdraw the court cases before we start planning the sugar industry again."
This was after he had warned sugar tycoons of the consequences should they not stop sabotaging public industries without providing any evidence.
"They (sugar tycoons) have three options, flee the country, go to jail, or go to heaven," he warned.
According to data from the Sugar Directorate, Rai controls almost half of Kenya's sugar market share.
