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High Court halts privatisation of four sugar milling companies

Brenda Murungi by Brenda Murungi
February 15, 2024
in News
Reading Time: 1 min read

The High Court has granted an injunction halting the government’s move to lease five public sugar factories to private firms. Justice Chacha Mwita issued the directive after Martin Nyongesa Baraza filed a petition challenging the decision.

“An interim conservatory order is hereby granted halting the tendering process under the international tender notice No. MOALD/SDA/IT,” read the order. The order will remain in force until April 19 when the matter will be heard.

In the court papers, Nzoia Sugar Company Limited, Chemelil Sugar Company Limited, Muhoroni Sugar Company Limited and South Nyanza Sugar Company Limited were to be placed under a long term lease with its operations to be fully under private investors.

Agriculture CS Mithika Linturi posted an invitation tender on their website on January 16 asking prospective tenderers to bid for the leasing of the public sector-owned sugar companies.

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In his petition, Martin Nyongesa sued Treasury CS Prof. Njuguna Ndung’u, Principal Secretaries under the ministries of Treasury and Agriculture as well as Attorney General Justin Muturi over the move to lease the sugar companies and stated that the public ought to have been consulted.

He further stated that the time frame for the tendering to occur is unreasonably short and defeats the purpose of tendering, transparency, and fair process.

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