Sarrai Group has been ordered to stop ongoing works at Mumias Sugar Company.
In a ruling on Friday afternoon, Justice Wilfrida Okwany said the application before her required her to halt the activities and actions as the parties in the case prepare their responses.
The new orders will be in place for 10 days.
On Thursday, a Vihiga court set aside an order issued on Tuesday allowing Ugandan firm Sarai Group to proceed with works at Mumias Sugar Company.
Justice W. Musyoka ruled that the County failed to disclose that Tumaz had already received orders from Milimani High Court on December 29, 2021 suspending the Mumias lease to the Ugandan firm Sarrai Group, and that no other orders can be issued contradicting lease suspension stay orders issued to Tumaz in Nairobi.
"Order of stay in Nairobi HCJR/E178/2021 was not exhibited to the motion herein dated 7/1/22 when it was placed before me on 11/1/22, yet the same was relevant to the extent that it relates to the same lease that is the subject of the motion dated 7/1/22 ," said Justice Musyoka in a ruling on 12/1/22 in Kakamega.
"The order of 29/12/21 should have been disclosed by the applicant (County), and since it cannot be possibly in operation at the same time with the order that I made herein on 11/1/22 , and being the first in time and to avoid a scenario of conflicting orders, I hereby vacate and discharge the order of 11/1/2022, " ordered Justice Musyoka.
The reversal of the orders dealt a blow to the County which had filed a suit in support of the Ugandan firm.
Earlier this week on January 10, 2022, Milimani High Court Judge Justice Anthony Ndung'u issued a warning to the parties in Mumias lease to stop disobeying lease suspension orders he issued on 29/12/21.
The orders were issued after Tumaz moved to the High Court to challenge the Mumias bidding process by PVR Rao, claiming that the process was done in secrecy and was marred by "fraud, mistakes and illegalities ".
Justice Ndung'u further ordered Tumaz to serve contempt of Court application to Sarrai and Rao for a hearing on 24/1/2022.Tumaz has filed to jail Sarrai directors and Rao for disobeying the lease suspension orders.
Tumaz which is associated with Mwale City investor Julius Mwale was the highest bidder with Ksh.27.6 billion vs Sarrai group's Ksh.11.5 billion according to court papers.
France's Kruman Finances which was the 2nd highest bidder with Ksh.19.6 billion has also protested the lease award to the Ugandan firm which is associated with Rai family.
