Judges put an end to Mumias' court drama to allow for revival

Mumias Sugar Company's main entrance. [File, Standard]

The file was then placed before Justices Warsame, M'Inoti and Laibuta. Again, Dr Khaminwa and Kimeto urged the second Bench to also recuse itself.

Khaminwa argued that since Justice Warsame was sitting in JSC, he should not sit in the case as there was a complaint against judges over Mumias Sugar before the commission.

Kimeto expressed discontent with the entire Bench, arguing that it was empanelled by an acting president whom she had filed a complaint against before JSC.

KCB, Sarrai and Rao opposed the application. Senior lawyer Githu Muigai, for Sarrai, and Mahat Somane, for KCB, said the application for recusal was a red herring intended to scare judges from sitting in the matter.

Lawyer Muigai said his clients were unfairly being punished as they had started repairing Mumias Sugar's machinery and had planted sugarcane in preparation to have the operations run full throttle. Already, the court heard, Mumias had started contracting farmers with the cane for crushing.

"With the resumption of operations, Mumias Sugar employed many Kenyans engaged in planting, harvesting, cane crushing and distribution value chain," argued Muigai, adding that the commercial court had relied on falsehoods to find his client guilty.

At the same time, the court heard that Mumias stoppage was hampering the government's efforts to revive the sugar industry in a bid to lower the cost of living.

The Justice Warsame Bench allowed the application. At the same time, they also allowed a separate application which sought to have Sarrai back in Mumias.

Mumias Sugar was incorporated on June 29, 1971. It was then privatised through listing at the Nairobi Stock Exchange in 2001.

According to court papers, the Treasury owns 20 per cent of the ailing miller while other State institutions have a 4.57 per cent stake. Individuals own the other 75.43 per cent.

The miller's financial troubles started in 2012. According to Treasury's documents, by the end of 2017-2018, it registered a Sh39.44 billion loss after tax. In that year alone, it posted a net after-tax loss of Sh15.14 billion. The shareholding equity had eroded to negative Sh14.63 billion, exceeding its Sh628.24 million assets.