Main petitioner in Mumias Sugar case, Kimeto & Associates, bows out
The entrance to Mumias Sugar Company. The bid for the sugar miller had many anomalies that were laid bare in court.
The main petitioner in the insolvency petition against Mumias Sugar Company has withdrawn the case.
The law firm of Kimeto & Associates Advocates filed a notice before the High Court on Friday, indicating its intention to withdraw the matter.
The law firm is among creditors of the collapsed miller and has been on the forefront seeking the revival of Mumias Sugar Company.
The firm is seeking more than Sh76 million from Mumias, having represented the miller in court cases.
"Take notice that due to circumstances beyond its control, the petitioner herein Kimeto & Associates Advocates hereby gives notice and withdraws whole the petition dated 20th March, 2019," the notice, dated September 1, states.
The notice comes a day after billionaire businessman Jaswant Rai also withdrew all his cases that were pending at the High Court and the Court of Appeal.
Lawyer Jackline Kimeto had recently expressed fears over the matter, and even filed a court case after she was summoned by the Directorate of Criminal Investigations for questioning.
She obtained court orders blocking her arrest, arguing the threats were meant to scuttle the proceedings that were pending before various courts.
The lawyer also petitioned the appointment of a new administrator after the terms of Rao and Kereto Marima came to an end.
Ms Kimeto was among the creditors committee that came up with an administration plan for Mumias as opposed to liquidating the miller.
The High Court then allowed KCB-appointed receiver manager PVR Rao to complete the leasing process, which he did on December 22, 2021 as he picked Uganda's Sarrai Group to manage the miller.
Six firms had placed their bids— including Kenya’s biggest miller, the Jaswant Rai family-owned West Kenya Sugar— which submitted the highest bid with Sh36 billion on the table.
Others were a consortium led by businessman Julius Mwale’s Tumaz & Tumaz Enterprises (Sh27.6 billion), Turkish and French consortium Kruman Finances (Sh19.7 billion), Kibos Sugar (Sh5.9 billion) and India’s Pandhal Industries (Sh5.9 billion).
The decision was challenged in court as parties argued that the process was shrouded in secrecy.
Mr Rao, however, said West Kenya’s financial bid did not make sense as the firm would have to crush an impossible amount of sugarcane to meet the Sh36 billion lease price quoted.
