Nairobi — Billionaire Businessman Jaswant Rai has withdrawn applications pending at Court of Appeal over the running of Mumias Sugar Company.
Rai through his West Sugar Company had challenged bid by his brother and business rival Sarbjit Rai manage the firm.
He joined the Dubai based firm, Vartox Resources Inc which also filed the notice of withdrawal of the appeal.
"TAKE NOTICE that Vartox Resources Inc., the 3rd Respondent in these proceedings hereby wholly withdraws its application dated 25 December 2022," read the withdrawal notice in part.
The withdrawal of the case comes days after President William Ruto threatened to take action against individuals, he accused of exploiting sugar cane farmers in the Western region.
On August 28, President William Ruto said that he fully supports commercialization of state-owned sugar factories and modernization.
He criticized those against it, asserting the government's failure in managing the mills despite attempts to revitalize.
"We will have to agree on how to handle such business as a government. Now we will not do the same thing of remitting money on the business and some people are using for their own benefits and we can't continue doing this, we will solve it once and for all," he said.
"We have to sort out the issue of sugar because it affects and touches the majority of Kenyans and that is what we are doing currently," he added.
Ruto said in a few weeks' time, he will solve the problems bedeviling the state-owned sugar factories across the country, especially the debts.
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He highlighted debts of upto Sh117 billion from five sugar factories including Mumias Sugar Company as he pledged to clear these under his leadership.
"I promise the people of this country that I will write off all debts amounting to Sh117 billion facing our factories. We have passed in our cabinet to write off the debts and the matter is before the national assembly. I know in the next few weeks the legislators will have to write off the debts as the first step so that I can plan well on the issue of sugarcane," said Ruto.
"Those cartels in the sector who think there is someone who they can send to come and talk to us, this time it is not going to be possible. Others mentioned Rai, who is that called Rai?This is the public resources and we will not allow anyone to take advantage of people in this region the government will protect them."
The Cabinet approved the commercialization of six sugar millers to tackle issues confronting sugarcane farmers nationwide.
