In Summary
  • Justice Edward Muriithi ruled the court intervene in the standoff between the Privatisation Commission and the county leaders before alternative dispute resolution mechanisms are exhausted.
  • That implies that the sale process initiated earlier is on.

Five State-owned sugar millers are up for sale again after the  High Court dismissed a petition filed by western Kenya political leaders to block the transaction.

Kisumu governor Anyang’ Nyong’o, former Gem MP Jakoyo Midiwo, the Council of Governors, Migori and Bungoma counties had in the petition claimed the national government has no authority to wade into privatisation of sugar firms because animal and crop husbandry are devolved functions.

Yesterday, Justice Edward Muriithi ruled the court intervene in the standoff between the Privatisation Commission and the county leaders before alternative dispute resolution mechanisms are exhausted.

That implies that the sale process initiated earlier is on.

The Privatisation Commission had in 2015 kicked off the process of selling majority stakes in Nzoia, South Nyanza, Chemelil, Muhoroni and Miwani sugar companies. Two of the businesses, Muhoroni and Miwani, are in receivership.

The move sparked a war with leaders from the sugar belt, who insisted that only county governments have the authority to deliberate on the privatisation of public firms in the agriculture industry.

Alternative routes

Justice Muriithi has suggested that the dispute be resolved through alternative dispute resolution vehicles such as mediation, negotiations and arbitration as prescribed by the Intergovernmental Act, 2012.

Page 1 of 2