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Sarrai Group had secured the lease for assets of Mumias Sugar Company

Agriculture

Competition Authority says Mumias lease award unprocedural

NAIROBI, Kenya, Feb 9 – The Competition Authority of Kenya (CAK), a government agency mandated to regulate mergers and acquisitions, has termed the leasing of Mumias Sugar Company as unprocedural.

The regulator rendered the opinion filed in court in a case challenging the leasing of the miller to Uganda’s Sarrai Group.

CAK said the process including transfer of assets was in violation of the law.

The lawsuit was filed by five parties: Lambert Ochochi, Augustino Saba, Prisca Ochacha, Robert Magero and Wycliffe Ng’ong’a.

The petitioners filed the suit against the statutory manager, PV Rao (KCB’s receiver manager), KCB, Attorney General Kihara Kariuki, the Agriculture Cabinet Secretary, the Competition Authority of Kenya (CAK), Sarrai Group Ltd, the Chief Land Registrar, the County Government of Kakamega, the Capital Markets Authority and Gakwamba Farmers’ Cooperative.

“It is evident that Rao’s decision to handover the assets of the company (Mumias) to Sarrai Group is blatant disregard and violation of the law, and amounts to criminal conduct under Competition Act 2010,” CAK stated in court papers in response to the case.

The farmers contested the lease award to Sarrai group, on the grounds that it was undertaken in an opaque manner and awarded to the lowest bidder without regulatory approvals.

Milimani Commercial Court Presiding Judge Justice Alfred Mabeya on Monday ordered the matter to be determined expeditiously and consequently slated the hearing from February 14th to 17th, 2022.

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