West Kenya asks court to shut down Butali Sugar

NAIROBI: The battle between West Kenya Sugar Company and Butali Sugar Mill has taken another twist with the former filing a petition for immediate closure of the latter.

West Kenya moved to the High Court at Kakamega and through their lawyer Kibe Mungai have said Butali is operating without a manufacturing licence contrary to the provisions of the Crops Act 2013.

They have also listed Agricultural Fisheries and Food Authority (AFFA), the Sugar Directorate, Alfred Busolo, Rosemary Mkok, Agriculture Cabinet Secretary, the Attorney General and Butali Sugar Mill as respondents.

In his submissions, lawyer Mungai said sections in the Act say that a person shall not manufacture or process a scheduled crop product for sale except under and in accordance with a licence issued under the Act.

IGNORE ROLE

“The first respondent (AFFA) being the regulatory and licensing authority has refused to carry out their statutory obligation of ensuring that the seventh respondent does not operate a sugar mill and or manufacture sugar and its by-products without a licence,” Mungai said.

He continued: “The first respondent is aware Butali does not have a manufacturing licence because the sugar mill’s application dated April 10, 2010 is still pending determination before them yet Butali continues to illegally operate its sugar mill plant.”

Lawyer Pheroze Nowrojee, for Butali Sugar, asked the court to have the petition proceed ‘expeditiously’ saying the matter needs to be settled quickly to settle rising anxiety.

Lawyer Peter Wanyama, representing more than 50,000 cane farmers who sell their produce to Butali, also asked the court to move quickly in determining the case “for the interest of farmers”.

Judge Antony Murima ruled that all parties should file and exchange affidavits within 21 days and adjourned the case until February 19, 2015 when the court will give further directions.

Meanwhile, farmers who attended the court proceedings held peaceful demonstrations as they went to Governor Wycliffe Oparanya’s office to seek his intervention on the matter.

Led by Malava MP Malulu Injendi and Silungai-Mugai Ward Rep Albert Wetundu, the farmers asked the governor not to let Butali be shut down, saying this will negatively affect farmers and the county’s economy.

Mr Malulu wondered why West Kenya is demanding for immediate closure of Butali on allegations that it is within a 40kilometre radius from West Kenya.

DEVOLVED SECTOR

He said if the case is determined on the basis of radius to deny Butali’s existence, West Kenya should also close because it is 22 kilometres from Mumias Sugar Company.

Addressing the farmers, the governor said Butali will continue to operate since the county government has the mandate to licence millers following devolution of agriculture.

He said the county government will seek to be enjoined in the case as an interested party in order to arrive at a lasting solution that will bring this 10-year-old battle to an end.

“Butali will not be closed down by anyone, agriculture is devolved and we have the mandate to address issues affecting the sector. I have written three letters to West Kenya Company inviting them for discussions but they have refused to honour my invitation,” he said.

Mr Oparanya said the county government has drafted a Bill to streamline the county’s sugar industry and asked the county assembly to fast-track and adopt it so that Butali can be licensed.

The governor asked interested investors to construct an additional five sugar mills in the county to enable farmers enjoy better payment rates.