Win for gov't as court clears way for privatisation of 4 sugar factories

Win for gov't as court clears way for privatisation of 4 sugar factories

A file image of the Milimani Law Courts in Nairobi, where Finance Act ruling was delivered on Monday.

The High Court in Nairobi has dismissed a petition challenging the government's decision to lease four public sugar factories to private companies.

In the case filed in February last year, the petitioner, Martin Nyongesa Baraza, argued that the public was not involved in deciding whether or not to lease the public sugar companies.

Justice Chacha Mwita however dismissed the case on Friday, ruling that there was public participation in the decision-making process to privatise the firms.

The ruling paves the way for the privatization of key sugar firms including Nzoia Sugar Company Limited, Chemelil Sugar Company Limited, Muhoroni Sugar Company Limited and South Nyanza Sugar Company Limited.

On its part, the government argues that privatisation of the sugar millers will improve efficiency, reduce debts, and revitalize the struggling sugar sector.

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