Court clears way for privatisation of sugar factories
With this court decision, the government now has the green light to proceed with its plans to privatise the sugar factories, aiming to make them more efficient and financially viable in the coming years.
The High Court in Nairobi has dismissed a petition that challenged the government's decision to lease four public sugar factories to private companies.
The ruling, delivered on Friday by Justice Chacha Mwita, clears the path for the government's plan to privatise the struggling sugar mills, including Nzoia Sugar Company Limited, Chemelil Sugar Company Limited, Muhoroni Sugar Company Limited, and South Nyanza Sugar Company Limited.
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The petition, filed by Martin Nyongesa Baraza in February of last year, argued that the public had not been adequately involved in the decision-making process concerning the privatisation of the sugar companies.
Baraza had hoped the court would halt the privatisation process, citing the lack of public participation.
However, Justice Mwita ruled that there was, in fact, adequate public involvement in the decision.
"There was public participation in the decision-making process to privatise the firms," the judge stated in his ruling.
With the case now dismissed, the government's plan to privatise the sugar factories is set to move forward.
The government has long argued that privatising these key sugar companies is necessary to revive the industry, reduce debt, and improve efficiency in production.
Inefficiencies have plagued the sugar sector in Kenya, and the government sees privatisation as a means of revitalising the sector, which has faced numerous challenges over the years.
On January 16, 2024, the Ministry of Agriculture placed an advertisement calling for private investors to bid on the sugar factories.
The ministry's notice required bidders to deposit Sh10 million as security in the tender process. "Tenders will be opened immediately thereafter in the presence of candidates or their designated representatives who choose to attend at Kilimo House," the notice stated.
President William Ruto first revealed his plans to privatise the sugar companies in October of last year.
He argued that the move would make the companies profitable once again and help revive the sector.
"The state will ensure prudent management of the factories to safeguard the interests of farmers," President Ruto said at the time.
With this court decision, the government now has the green light to proceed with its plans to privatise the sugar factories, aiming to make them more efficient and financially viable in the coming years.
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