Court strikes out application to stop privatization of five sugar companies, terms application premature


High court has striked out an application by Kisumu Governor Anyang’ Nyong’o and former Gem MP Jakoyo Midiwo to stop privatization of five sugar companies in Western Kenya.

Justice Edward Muriithi who read the judgment on behalf of Justice Chacha Mwita ruling on grounds that the application was premature since the Mechanisms for alternative dispute resolutions between the national and county governments as ordained by the constitution have not been exhausted.

“The court cannot be asked to resolve the dispute as it would be usurping the prior jurisdiction of the organs of the Intergovernmental relations Act, through which the governments shall make every reasonable effort to settle the dispute,” read justice Mwita.

The judge said for the said reasons the court striked out the petitions and the Judicial Review proceedings consolidated before it.

The court also ruled that there’s is no suggestion that the structures of the alternative dispute resolutions under the Intergovernmental Relations Act 2012 cannot remedy the situation manifested in the dispute about whose function between the national and County government is the business of milling of sugar.

The judge said that the alternative dispute resolution efforts ended at a second meeting at which it was greed that the matter should be referred to the appropriate Intergovernmental Relations Committee.

In the case Kisumu Governor Nyong’o and Midiwo had moved to court claiming that the sale process was being conducted illegally, following placement of an advertisement in the newspapers on March 11th last year.

Through their lawyer Victor Obondi, the two ODM members claimed that the privatization commission ignored mandatory and material procedure and conditions prescribed for the privatization process of the subject companies, while issues raised by cane farmers had not been addressed.

In May 2015, Kenya approved the sale of the government’s stake in five sugar companies; Nzoia, South Nyanza, Chemelil, Muhoroni and Miwani