High Court in Nairobi issued a ruling temporarily stopping the sale of four sugar milling companies.
Justice Chacha Mwita put on hold the privatization process until a pending court case is heard and resolved.
“An interim conservatory order is hereby granted, halting the tendering process under the international tender notice No. MOALD/SDA/IT/001/2023-2024,” said Mwita.
The sugar companies affected by this halt are Nzoia, Chemelil, Muhoroni, and South Nyanza.
Martin Nyongesa, the petitioner, filed a case against Treasury and the Ministry of Agriculture, along with AG Muturi, opposing the lease.
Nyongesa’s argument is about the lack of sufficient public engagement before deciding to lease out these assets.
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The order will remain in effect until April 19, 2024, when the matter will be fully heard.
Earlier, on January 16, the Ministry of Agriculture had advertised bids from private investors interested in owning the sugar companies.
Prospective investors were required to submit a Ksh.10 million deposit as security during the bidding process.
President William Ruto first made public his plans to privatise sugar companies in October last year arguing that the move would make them profitable and revitalise the sector.
But Justice Mwita has proved tough in his rulings, and it is not working for President Ruto.
On December 5 last year, Mwita suspended the privatisation of 11 state-owned companies in Kenya, including the national oil and gas company.
This followed an appeal by the main opposition party, owned by Raila Odinga.
According to Raila Odinga, the sale of the state’s holdings should be subject to a referendum.
This, he says is of strategic importance to the companies concerned in Kenya, the economic powerhouse of East Africa.
Mwita said he was “satisfied that the (opposition) application raises constitutional and legal issues of public importance that require critical examination.”
The 11 companies are among the 35 that President William Ruto announced last year that he wanted to privatise.
