Nairobi — The illegal sale of 10,000 acres belonging to Miwani Sugar Company at a paltry Sh28 million could stand in its way to privatisation.

The nucleus land was sold to Crossley Ltd, associated with the owners of Kibos Sugar and Allied firm by auctioneers in 2007.

In January, the Kenya Anti-Corruption Commission recommended for the prosecution of a number of personalities, among them a magistrate and an advocate over the sale.

Last week, a group of farmers from the area petitioned Justice and Constitutional Affairs minister Mutula Kilonzo to have the prosecutions proceed.

Mr Samuel Anyango, the farmers' chairman, said the continued delay in completing the issues in court is holding back investors from bidding for the firm.

"The factory must be revived... however, this cannot be done unless the Court of Appeal case by Crossley is discharged and the recommendations of the Anti-Corruption Commission acted upon," said Mr Anyango.

The sugar miller was put under receivership in 2001 and the Kenya Sugar Board became the debenture holder.

The initial amount of Sh2.8 billion owed by Miwani was negotiated and reduced to Sh680 million.

A deal was struck, which resulted in Oriental Commercial Bank getting Sh330 million, and Suljit Shah through Vanessa Associates receiving Sh350 million.

A valuation report pegged the property at Sh2 billion but KSB in attempts to sell the land discovered it had fallen under the auctioneers hammer through a court decree.

It is on this basis that KACC recommended the prosecutions, although Crossley moved to the Court of Appeal to stop an injunction issued against the sale. Miwani is one of the sugar millers lined up for sale by the government as part of its privatisation programmes.

The company's land has been noted to be one of its selling points to investors.

"We now have a group of investors from South Africa interested in the company and have conducted a feasibility study. They are ready to commit to revive it," said Mr Anyango.