The High Court in Mombasa has ordered the State to release a consignment of sugar impounded at a sugar factory in Kwale County almost five months ago.
A multi-agency task force raided Kwale International Sugar Company (Kiscol) in June, confiscating the consignment of about 3,700 tonnes of brown sugar said to have been contaminated.
But on Friday, Justice Erick Ogola ordered the release of the sugar back to the miller after the quality agency gave it a clean bill of health.
Kiscol moved to court on September 28 and obtained an order to restrain the Kenya Bureau of Standards (Kebs) and other state agencies from interfering with the sugar until the matter was heard and determined.
The court also ordered the re-testing of the sugar. According to the re-testing report by Kebs presented to the High Court in Mombasa, more than 70 per cent of the sugar met the quality standard prescribed by the standards body.
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“In line with the letter written by Kebs that the sugar which had been seized by the multi-agencies has complied with the law should be released forthwith,” directed Justice Ogola.
The judge, however, said he would later rule on whether the seizure of sugar from the miller’s warehouse and its closure were illegal.
Pay damages
Kiscol through its lawyer Tom Ojienda had sued Kebs, Kenya Revenue Authority (KRA), the Attorney General, the Trade Ministry, the Directorate of Criminal Investigations and the Inspector General of Police for what it called unlawful seizure, closing down of its operations and subsequent economic loss.
Prof Ojienda accused the multi-agency task force of trampling on the rights of his client, saying it had not followed the laid down procedures.
He said that the state’s action to seal the factory’s warehouse, which also stores other equipment, was tantamount to stifling genuine business and the State should be compelled to pay for the damages.
But Kebs lawyer Lucie Rasanga insisted her client in conjunction with other State agencies raided the factory after a laboratory test found that the sugar manufactured by the company did not meet the required standard. She told the court that her client acted within the law and dismissed claims that it should be held responsible for the losses incurred by the firm.
But Prof Ojienda faulted the State agencies for loss of earning by his clients and asked the court order the State to pay for the cost of the suit.
However, state lawyer Guyo Wachira told the court to dismiss an application by the company seeking a permanent injunction against the seizure and closure of the factory.
He said the fact that Kebs found that some sugar was substandard was a proof that the company had not followed the law.
“The state cannot be held responsible if it acted within the law when they got intelligence that a crime had been committed,” said Mr Wachira.
He said since the sugar had a higher percentage of bacteria beyond what was specified.
