Nairobi Kenya — High Court has dismissed a petition seeking to stop leasing of government-owned sugar farms, arguing that public participation was adequately done and the process followed the Public Private Partnership Act.

Judge Chacha Mwita's ruling today now paves the way for the privatization of key sugar firms, including Nzoia Sugar Company Limited, Chemelil Sugar Company Limited, Muhoroni Sugar Company Limited, and South Nyanza Sugar Company Limited.

This decision will enable the government to improve efficiency, reduce debts, and revitalize the sector.

It follows a cased filed in February 2024, by Martin Nyongesa Baraza who argued that the public was not involved in deciding whether or not to lease the public sugar companies.

Nyongesa told the court that the public ought to have been consulted in the decision-making process of deciding whether or not to lease public sector-owned sugar companies.

The petitioner told the court that the time limits given are unreasonably short and defeat the purpose of tendering, transparency, and fair process.

"No meaningful opportunity to comment on or contribute to the idea of the intended lease was accorded to the public," said Nyongesa.

This led to the High Court issuing orders suspending the government's decision to lease five public sugar factories to private companies.

Justice Chacha Mwita issued the order stating, "An interim conservatory order is hereby granted halting the tendering process under the international tender notice No. MOALD/SDA/IT," read the order.

The Ministry of Agriculture and Crops Development had put up Nzoia, South Nyanza (SONY), Chemelil, Muhoroni, and Miwani sugar companies for lease.

The goal, according to the Ministry of Agriculture and Food Authority, is to make it easier for these sugar enterprises to become profitable again following modernization and effective management free from bureaucratic obstacles, therefore increasing their competitiveness in the COMESA, EAC, and global sugar markets.

Through the Agricultural Development Corporation (ADC), the government has 98.8 percent of the shares in Sony, 97.93 percent in Nzoia, 96.22 percent in Chemelil, and 1.42 percent through the Development Bank of Kenya (DBK).