High Court Dismisses Petition Against Leasing of State-Owned Sugar Farms » Capital News

NAIROBI, Kenya, Feb 28- The High Court has dismissed a petition challenging the government’s decision to lease state-owned sugar farms, ruling that public participation was adequate and the process complied with the Public Private Partnership Act.

Justice Chacha Mwita, delivering the verdict on Friday, said the petition lacked merit, paving the way for the privatization of key sugar firms, including Nzoia Sugar Company Limited, Chemelil Sugar Company Limited, Muhoroni Sugar Company Limited, and South Nyanza (SONY) Sugar Company Limited.

The ruling follows a case filed in February 2024 by Martin Nyongesa Baraza, who argued that the public had not been adequately consulted before the decision to lease the sugar companies. He contended that the time limits set for public engagement were unreasonably short, undermining transparency, fair process, and competitive tendering.

Nyongesa further told the court that no meaningful opportunity had been given for public input on the leasing process. In response, the High Court had issued interim orders suspending the government’s plan to lease the factories pending the final ruling.

The Ministry of Agriculture and Crops Development had put up Nzoia, SONY, Chemelil, Muhoroni, and Miwani sugar factories for lease, citing the need to modernize operations, reduce debts, and enhance efficiency. According to the Agriculture and Food Authority, the goal is to revamp the struggling sector and improve competitiveness in the COMESA, East African Community (EAC), and global sugar markets.

The government, through the Agricultural Development Corporation (ADC), holds a 98.8% stake in SONY, 97.93% in Nzoia, 96.22% in Chemelil, and 1.42% in Muhoroni through the Development Bank of Kenya (DBK).

With the petition dismissed, the government is now free to proceed with the leasing process, which is expected to attract private investors and revitalize the sugar industry.