AG joins bidders seeking revocation of Mumias lease to Sarrai Group
The Attorney General has retracted his position in Mumias lease case and joined the aggrieved bidders seeking the revocation of the lease awarded to Uganda-based Sarrai Group.
Through Principal State Counsel, Allan Kamau, AG Kihara Kariuki has asked the court to readmit a replying affidavit sworn by National Treasury Principal Secretary Julius Muia that had been struck out on a technicality.
Kihara had lodged a petition opposing Muia’s affidavit which stated that the leasing of Mumias should be awarded to an entity that has the capacity to generate income.
“The striking out of Muia’s replying affidavit is not only prejudicial to the AG but to the public. It is unfair and contrary to the overriding objective test, which this court should uphold at all times,” Kamau said.
In the affidavit, Muia had stated that the leasing of Mumias Sugar should adhere to all regulatory requirements.
Muia had argued that the lease should be awarded to an entity that has capacity to generate income, pay creditors and sustain operations.
“Any interested party who has the intention of leasing Mumias Sugar Ltd should have the best financial interest of the company and should be able to generate the highest possible rental income to pay the secured creditors, service providers, farmers, workers and sustain the operations of the company,” read the affidavit.
Kakamega County opposed West Kenya’s bid to lease Mumias Sugar Company arguing that the firm associated with the Rai family had previously admitted that it was struggling financially.
In an application before the High Court, Kakamega County alleged that West Kenya had stated in a suit filed before the Employment and Labour court that it had suffered massive losses and was at risk of collapse, because of the effects of the Covid-19 pandemic.
The county attorney Vivianne Mmbaka said the revelations were made in a suit filed by West Kenya as it sought to stop former employees from enforcing an award of Sh934.4 million, arising from salary arrears.
“It is strange and impractical for the 6th plaintiff (West Kenya) who is unable to settle a claim of Ksh507,488,511 to allege that, at the time of submitting the bids to the company which is just one year after the admission of its precarious financial situation, it was capable of injecting Ksh36 billion into revival of the Company (Mumias),” she said in an affidavit.
West Kenya joined a case filed by five farmers opposing a 20-year lease awarded to Uganda-based Sarrai Group.
The court granted temporary orders, stopping Sarrai Group from taking over the Mumias, pending the determination of the case.
The case to revive plans of Mumias Sugar Company will proceed to a full hearing after a judge declined to strike it out on the grounds that it lacked jurisdiction.
