NAIROBI|The High Court has dismissed a petition challenging the lease of Nzoia Sugar Company, paving the way for West Kenya Sugar Company to move forward with its Ksh 5.76 billion investment in the ailing state-owned miller.
In a judgment delivered virtually, Justice Lawrence Mugambi ruled that the case filed by Athanas Wafula Wamunyinyi was res judicata, meaning it had already been determined in a previous matter. The court referenced the 2024 ruling in Martin Nyongesa Barasa v Cabinet Secretary, Ministry of Agriculture & Others (Petition No. E065 of 2024), which addressed identical concerns including the issue of public participation in the leasing process.
Wamunyinyi had argued that the government failed to adequately involve stakeholders before awarding the lease. However, the court found no new legal grounds to reopen the matter.
With the ruling, West Kenya Sugar a subsidiary of the Rai Group retains its lease rights under Tender No. MOALD/SDA/IT/001/2024-2025, part of a broader state initiative to revive moribund sugar factories through private partnerships.
The company plans to inject Ksh 5.76 billion into modernizing the Nzoia Sugar factory and improving its production systems.
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe recently praised West Kenya Sugar for implementing policies that benefit farmers and workers alike. According to data from the ministry:
- Over 120,000 contracted farmers receive weekly payments totaling Ksh 14 billion annually.
- Employees are paid on time each month.
- Ksh 7 billion is invested annually in cane development.
Kagwe described the lease as “a necessary step to restore efficiency and market stability in the sugar sector.”
Separately, the government has released Ksh 200 million toward settling salary arrears for sugar factory workers. This brings the total disbursement to Ksh 800 million to date, a move aimed at easing the financial burden on staff affected by prolonged operational disruptions at state-owned mills.
The court’s ruling removes the last major legal barrier in the restructuring of Nzoia Sugar, allowing West Kenya Sugar to begin operational takeover and factory upgrades.
The Ministry of Agriculture has stated that the lease is expected to stabilize cane prices, ensure consistent payment to farmers, and return the mill to profitability after years of financial losses.
