A High Court in Nairobi on Wednesday, February 14, temporarily halted the sale of 4 sugar milling companies. The ruling, issued by Justice Chacha Mwita, halted the privatisation until a case filed in court is heard and determined.
“An interim conservatory order is hereby granted halting the tendering process under the international tender notice No. MOALD/SDA/IT/001/2023-2024,” read the court order.
The sugar companies halted for privatisation are Nzoia, Chemelil, Muhoroni and South Nyanza.
Petitioner Martin Nyongesa sued the Treasury and the Ministry of Agriculture alongside AG Muturi over the move to make a long-term lease of the four companies.
Nyongesa argued that there was no adequate public engagement by the government before deciding to lease out the four sugar companies.
According to the court, the order halting the lease will remain in place until April 19, 2024, when the matter will be heard.
On January 16, the Ministry of Agriculture advertised bids from private investors seeking to own the sugar companies.
In a notice contained in the local dailies, the ministry demanded a deposit of Ksh10 million from prospective investors as security during the bidding process.
"Tenders will be opened immediately thereafter in the presence of candidates or their designated representatives who choose to attend at Kilimo House," read the notice by the Ministry of Agriculture.
President William Ruto first made public his plans to privatise sugar companies in October last year arguing that the move would make them profitable and revitalise the sector.
The head of state insisted that the state would ensure prudent management of the factories to safeguard the interests of farmers. By Timothy Cerullo, Kenyans.co.ke
