Mumias lease cases to be consolidated

The Judicial review section of the high court at Milimani ruled to refer Mumias lease case filed by Tumaz and Tumaz Enterprises to the supervising Justice Mabeya.

Justice Anthony Ndung'u ruled that the suit filed against Uganda firm Sarrai Group and Mumias receiver manager PVR RAO should be heard at the high court's commercial section under Justice Mabeya.

Justice Mabeya is presiding over a similar case filed by five farmers of Mumias Sugar against Rao, Sarrai Group and others.

Tumaz and Tumaz which was one of the bidders in the Mumias lease tender, was enjoined in that Case by Justice Mabeya, together with the farmers and West Kenya Sugar Company which was also another bidder in the Mumias lease.That informed the court's consolidation of the cases as both high courts cannot claim jurisdiction on the same case at the same time.

The farmers argued that Rao awarded the lease to the lowest bidder Sarrai Group for sh5.8 billion in an opaque manner.

Tumaz accused Rao of conducting the bidding process with fraud, mistakes and illegalities.

West Kenya through their Counsel Paul Muite wanted Rao to explain why the lease was awarded to the lowest bidder, Sarrai Group.

In its reply affidavit to court, Competition Authority of Kenya said that they had not received a lease from neither Rao nor Sarrai Group for approval as required by law.

The Attorney General filed its papers in support of the farmers and the bidders in the same case.

The court issued orders in January suspending the lease award to Sarrai Group until the farmers case is heard and determined.