The High Court has prolonged orders prohibiting Sarrai Group Limited from conducting any business with Mumias Sugar until a case challenging the company’s operations is heard and decided.
On September 23, 2022, the court will make a decision.
“There must be an interim order of stay of execution of the judgement and order of the High Court pending the delivery of the ruling on September 23, 2022,” Justice Alfred Mabeya decided on Wednesday, June 8.
Sarrai Group, a Ugandan sugar mill company, was dealt a big setback last month when a court invalidated its Mumias Sugar lease, which had been given in December.
Sarrai was told to leave Mumias Sugar’s premises right away.
The Ugandan firm had already started work and had even put money into renewing the project.
“As a result, the December 22, 2021 lease made to Sarrai Group is now invalidated, and Sarrai Group is ordered to entirely remove the premises of Mumias,” the court declared.
Judge Mabeya named Kereto Marima as Mumias’ new administrator and ordered Rao to give over the company within seven days.
“Rao, as receiver-manager, will work with Marima to guarantee a smooth administration of Mumias, and the receivership will be suspended by default for that time,” he said.
Rao appealed the ruling, claiming that the court erred in appointing him as both administrator and receiver at the same time.
The only inescapable conclusion reached by the court is that Rao is an unwilling suitor since he was harmed by his appointment.
Tumaz & Tumaz businesses, a company linked to Mwale City investor Julius Mwale, came out on top with an offer of Kshs27.6 billion for a 20-year lease.
Kruman Finances came in second with a 25-year lease bid of Ksh.19.7 billion.
Transmara Group (Sarai) was awarded the tender irregularly after closing the top three bids with Ksh.11.5 billion over a 20-year lease term.