The High Court has dismissed a petition challenging the leasing of Nzoia Sugar Company, clearing the way for its transition to private management under West Kenya Sugar Company. The petition, filed by former Kanduyi MP Athanas Wafula Wamunyinyi, had sought to halt the leasing process, but the court found the matter to be res judicata, meaning it had already been conclusively determined in a previous case.
The ruling was delivered virtually by Justice Lawrence N. Mugambi, who upheld preliminary objections raised by the State and other parties involved. The court held that the key concerns raised, especially those regarding the alleged lack of public participation in the leasing process, had already been addressed in a previous case involving Vice Cabinet Secretary for Agriculture and other stakeholders. With this ruling, the path is now clear for West Kenya Sugar Company, a subsidiary of the Rai group, to proceed with its Ksh 5.76 billion investment in the struggling Nzoia Sugar mill.
West Kenya Sugar secured the lease under the government’s initiative to revitalize state-owned sugar millers, many of which have faced years of mismanagement, debt, and declining productivity. The company plans to modernize the Nzoia Sugar factory and significantly improve its operational efficiency and output.
According to the firm’s strategic plan, Ksh 5.76 billion has been earmarked for technological upgrades and modernization of factory operations. The aim is to enhance sugar production capacity and ultimately transform Nzoia Sugar into a profitable, self-sustaining entity. This comes at a time when the sugar sector has been under intense scrutiny due to its financial instability and impact on livelihoods in western Kenya.
The company’s management has also pledged to implement a range of farmer- and worker-friendly policies. These include weekly payments to more than 120,000 contracted farmers, amounting to approximately Ksh 14 billion annually, as well as consistent and timely monthly salaries for employees. Additionally, Ksh 7 billion is being allocated annually for cane development initiatives, including seed distribution, extension services, and support for mechanization to improve yields and reduce farming costs.
The High Court’s ruling lends legitimacy to the government’s broader privatization drive and its efforts to restore profitability to the sugar industry. It also confirms the legality of the leasing process (Tender No MOALD/SDA/IT/2024-2025), which had been under scrutiny following political and public opposition.
In a related move aimed at easing worker unrest, the government has released Ksh 200 million to partially settle outstanding salary arrears for sugar factory employees. This brings the total amount disbursed so far for the same purpose to Ksh 800 million. The intervention is expected to boost morale and ensure smoother operations during the transition period.
