Rai firm loses bid to stop Busia Sugar licensing

Businessman Jaswant Singh Rai has suffered a major setback after the High court dismissed a suit filed through his firm, West Kenya Sugar, seeking to block Busia Sugar Company from being licensed to operate a Sh1.3 billion milling plant in Western Kenya.

Justice Eric Mwita on Friday dismissed the petition filed by West Kenya Sugar on the grounds that Mr Rai’s firm had failed to identify any mis-step by the Agriculture and Food Authority (AFA) in the ongoing process of licensing Busia Sugar Company.

West Kenya Sugar Company obtained a court order to stop AFA from issuing the firm with a sugar processing licence, putting on hold its Sh1.3 billion investment.

West Kenya obtained a court order from Nairobi High Court suspending the process initiated by the AFA calling for public views on licensing of Busia Sugar Industries. “The petitioner has not identified a single mis-step in the process,” observed Justice Mwita, “It (the suit) is dismissed,” he ordered.

The judge noted that the regulator was discharging its legal mandate, noting that it is West Kenya Sugar that has delayed the process. This is a blow to West Kenya Sugar which has been embroiled in bitter rivalry with Busia Sugar Industries.

West Kenya Sugar obtained a court order in April suspending AFA’s March 9 gazette notice that made public Busia Sugar’s application for an operating licence.

In opposing the application, Mr Rai had argued that the rival firm had not obtained a new environmental impact assessment (EIA) licence after the High Court suspended the previous one in 2016.

AFA says the issuance of the EIA licence is the mandate of the National Environment Management Authority and that it is not within its jurisdiction to determine the validity of the licence granted by Nema.

Busia Sugar Industries has over the past five years been fighting to get a milling licence but its efforts were crippled by numerous court cases filed by existing millers seeking to protect their territory. If licensed, it bears the potential of opening a fresh battle for sugar cane where three millers already exist.