Rai in fight for control of Western sugar belt

What you need to know:

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.
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.

Businessman Jaswant Singh Rai has stepped up his fight to stop Busia Sugar Company from being licensed to operate a Sh1.3 billion milling plant in Western Kenya.

Mr Rai in a fresh affidavit filed through his company West Kenya Sugar, has accused the Agriculture and Food Authority (AFA) of acting in contempt of court in its hearing of Busia Sugar’s application despite a court order suspending the same.

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.

“That the first respondent in total disregard to the court order issued on April 20, 2018 has gone ahead and issued a hearing notice dated June 25, 2018 inviting the petitioner for hearing of their objection despite there being a court order barring any further activities regarding licensing of the 4th respondent based on gazette notice number 2196,” Mr Rai says in a sworn affidavit.

West Kenya Sugar filed an objection against the licensing of Busia Sugar Company with AFA before moving to the High Court for an injunction against the application.

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.

Pending cases

AFA has in response accused West Kenya Sugar of obtaining the court order without disclosing all the facts, noting that other cases are pending between the parties in various courts.

AFA further denied disobeying the court order, arguing that the court suspended the granting of a licence to Busia Sugar but not hearing of objections filed by West Kenya Sugar.

Besides, the AFA told the court that West Kenya Sugar is the only entity objecting to the licensing of Busia Sugar.

But Mr Rai claims that the authority is working under external pressure and in clandestine manner in the matter and may go ahead to grant the said licence. Mr Rai claims that AFA published its intention to grant the milling licence to Busia Sugar before ascertaining the validity of the EIA licence that the applicant had presented.

AFA argues that West Kenya Sugar is not interested in getting its objection heard and determined, but has devised a scheme of delaying the decision through court orders suspending the process.

Fishing expedition

The agency further accuses West Kenya Sugar of being on a fishing expedition, noting that the firm has not produced any evidence to support its objection.

The miller’s current opposition is hinged in the hope that the authority will give it documents to support its case.

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

If licensed, Busia Sugar bears the potential of opening a fresh battle for the related raw material where three millers already exist.

Africa Polysac, the investor behind the firm, is seeking to join Mumias, Nzoia, West Kenya and Butali sugar companies in the fight for the Western region’s market.