The High Court has dismissed a legal challenge seeking to block the leasing of Nzoia Sugar Company, effectively allowing West Kenya Sugar Company a firm under the Rai Group to move forward with its Sh5.76 billion investment in the ailing state-owned miller.

Justice Lawrence N. Mugambi delivered the ruling virtually, siding with preliminary objections raised by the government and other respondents.

The court found that the petition, filed by politician Wafula Wamunyinyi, was res judicata meaning the issues raised had already been conclusively addressed in a prior case, specifically Martin Nyongesa Barasa v Cabinet Secretary, Ministry of Agriculture & Others (Petition No. E065 of 2024).

Wamunyinyi had approached the court in early February, seeking to halt the privatization of Nzoia, Chemelil, Muhoroni, and South Nyanza sugar firms, arguing that the leasing process lacked adequate public consultation.

He faulted then-Agriculture CS Mithika Linturi for publishing a tender notice on the Ministry’s website on January 16 without engaging the public beforehand.

He named the Cabinet Secretary, the Agriculture Principal Secretary, and the Attorney General as respondents, claiming that their actions violated constitutional requirements on public participation and procurement transparency.

“This was done without engaging Kenyans, and unless the court intervenes urgently, public assets risk being leased unlawfully,” he stated in court documents.

Despite the challenge, West Kenya Sugar successfully secured the lease to run Nzoia Sugar under the government’s broader initiative to revive struggling sugar mills.

The company has pledged Sh5.76 billion towards modernizing the plant and increasing production efficiency.

Agriculture and Livestock Development CS Mutahi Kagwe recently lauded West Kenya Sugar for its farmer-centered practices, which include disbursing Sh14 billion annually to over 120,000 contracted farmers through weekly payments.

The firm has also committed to timely salary payments for employees and an additional Sh7 billion investment into sugarcane development each year.

The court’s ruling affirms the validity of the leasing process under Tender No. MOALD/SDA/IT/001/2024-2025, reinforcing the company’s takeover of Nzoia Sugar’s operations.

Meanwhile, the government on Thursday released Sh200 million toward settling salary arrears owed to sugar factory workers, pushing total payments so far to Sh800 million.