Nairobi — The Court of Appeal of Nairobi has grounded a decision by the High Court involving an appeal by the West Kenya Sugar Company Ltd to quash the decision made by the Agriculture and Food Authority to register the Butali Sugar Mills Limited to operate a sugar mill.

In a ruling dated March 212024, the court of appeal said that it was unable to find any basis that there was liability between the West Kenya Sugar and the AFA.

"Having considered the material on record, the submissions, and the law, we set aside the judgment by the learned judge to the extent that it apportioned liability as between the appellant and the Nai Civil Appeal No E973 & E981 of 2023 Page 124 of 1241st respondent and substitute therefor, judgment for the 2nd respondent against the appellant and the 1st respondent jointly and severally in the sum of Kshs. 18,267,438/70 with interest at court rates from the date of filing the suit till payment in full," it stated.

According to the high court, the West Kenya Sugar Company sought, through the High Court, to quash the Certificate of Registration dated April 13, 2005, issued by the AFA to the Butali sugar mills.

Additionally, West Kenya Sugar sought to prohibit the authority from entertaining or granting a fresh application from the 2nd respondent to construct or operate a sugar mill within the West Kenya Zone.

According to the court, the appeal was based on the fact that on September 23, 2004, the Chief Executive Officer of the 1st respondent had issued an undertaking to the appellant that no other miller would be registered to operate a sugar mill within a 24 km radial distance of the appellant's mill.

"The genesis of this dispute was a Judicial Review application filed by the appellant, being Nairobi High Court Civil Miscellaneous Application No. 1127 of 2005 - R v Kenya Sugar Board ex parte West Kenya Sugar Company Ltd and Ministry of Agriculture and Butali Sugar Mills Limited (hereafter, the Judicial Review application)," he said.