Settle Mumias tiff out of court

Entrance gate at Mumias sugar company. PHOTO | ISAAC WALE | NMG

What you need to know:

  • This could be the beginning of lengthy litigation that will drag in court which will lose valuable time and incur legal fees at the expense of kickstarting the turnaround Mumias sugar.
  • The parties should consider settling the matter out of court.

The Kruman-Finances and Tumaz & Tumaz protest on the leasing of Mumias Sugar to Sarrai Group should not end up in court.

The two companies that placed the highest financial bids for leasing troubled Mumias Sugar have protested the move to award the tender to the Ugandan company, arguing evaluations on technical capacity should have been done by a third party.

They argue that Sarrai Group was least qualified on grounds that it was not the highest bidder.

Businessman Julius Mwale, who had placed the highest bid of Sh27.6 billion but missed out on the offer, has said that he will be moving to court to challenge the process, saying it was not transparent.

This could be the beginning of lengthy litigation that will drag in court which will lose valuable time and incur legal fees at the expense of kickstarting the turnaround Mumias sugar.

The parties should consider settling the matter out of court.

Otherwise they are likely to join the backlog of cases occasioned by delayed hearing and determination of disputes particularly commercial claims which make up the second highest number of pending court cases.

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