Business tycoon Jaswant Rai withdraws all cases against Mumias Sugar

After the direct triple threat from President William Ruto, business tycoon Jaswant Rai has thrown in the towel in the battle for the control of the insolvent Mumias Sugar Company.

Rai and his West Kenya Sugar Company have now withdrawn four cases related to the running of the sugar factory in notices filed before the Court of Appeal and the High Court. 

The Rai Group Chairman, who was kidnapped last week in mysterious circumstances before being released two days later by his abductors, through three notices of withdrawal filed at the Appellate Court and one at the High Court dated August 30, said he has discontinued and withdrawn the claims.

In the first suit, an insolvency case filed by Kimeto and Associates Advocates in 2019 and in which West Kenya Company and Jaswant Rai were named as interested parties and applicants, Rai has applied to discontinue and withdraw their claim in the suit.

The second case is the one filed by Kenya Commercial Bank and PV RAO, who was the Mumias Sugar Company receiver manager and administrator.

In the case, KCB and PV RAO had challenged the court's decision to nullify, revoke and cancel the lease awarded to Sarrai Group in December 2021 and also appointed a new administrator.

West Kenya Sugar Company on its part was against the appeal filed by the two on the grounds that PV RAO awarded the lease to the lowest bidder.

 In the third case filed by Sarrai Group, the company was seeking to overturn the decision by Justice Alfred Mabeya which cancelled their lease and ordered they vacate the premises.

West Kenya Sugar however moved to the Court of Appeal and filed an appeal against the Ugandan-based firm owned by Rai’s brother Sarbjit Rai.

The fourth case is the civil application case no E 187 OF 2023 filed by Sarbjit Rai, Rakesh Kumar and Stephen Kihumba where West Kenya has been named as a respondent.

Rai, through his lawyer Martin Gitonga has given the court the notice to withdraw from the matter.

Vartox Resources Limited, a company registered in Dubai with two foreign directors and associated with the billionaire businessman, was the first to withdraw from cases involving the running of the sugar company.

Vartox Resources had challenged the lease awarded to Sarrai Group to manage Mumias Sugar Company,

The company was also opposed Sarrai Group's application to overturn the nullification of the lease and removal of PV RAO as the administrator.

A decision attributed to President Ruto's directive to the investors to withdraw the cases and leave the company which the government is the biggest shareholder.

The President had attributed the failure to revive the company to sugar cartels whom he warned of deportation, jail term and what he only termed as helping them go to heaven; a statement the lawyers’ body LSK, human rights organisations and opposition leaders said was a death threat.

It is however not clear if the other parties in the matter will heed the call of the President or stay put and allow the law to take its course.