The high Court in Kakamega on Friday February 18th, 2022 refered a case filed by the Kakamega County Government against Mumias receiver manager PVR Rao and Tumaz and Tumaz enterprises Ltd to a full hearing.
The County Government had filed a lawsuit on January 10th, 2022 against the two to stop interfering with Sarai Group lease for Mumias arguing that as County, they will lose revenue if the court did not intervene. Lawyer James Orengo representing the County government supported the court's ruling.Tumaz and Tumaz was represented by Nelson Havi.
Tumaz and Tumaz enterprises which bid Kshs. 27.6 billion vs Sarai group's shs. 11.5 billion obtained orders from the judicial review of the high Court in Nairobi on December 29th, 2021 , suspending the lease. It argued that the bidding process was marred by fraud, mistakes and illegalities.
The Mumias lease suspension by the High Court in Nairobi remains in place until Justice Anthony Ndung'u rules on March 3rd, 2022.
A separate case filed by Mumias sugar farmers and other bidders last month was heard by Justice Wilfrida Okwany at Milimani court Nairobi. The judge suspended Mumias lease until March 14th, 2022 to allow the parties to be enjoined in the suit. The farmers claimed that the bidding process was opaque and the lease was awarded to the lowest bidder Sarai group for shs 5.8 billion without regulatory approvals.
Competition authority of Kenya in its submission in the farmers case said that they had not received any documents for approvals from Sarai nor Rao.
Later, more cases were filed against Mumias sugar receiver manager and Sarai Group by Creditors and enployees of Mumias sugar seeking to reverse the lease award.
