Tribunal dismisses an application to review a tender awarded to a company to revive Mumias Sugar Company.

A tribunal has struck out an application that sought to review a  tender awarded to a Ugandan  company to revive Mumias Sugar Company.

It has been struck out as the tribunal said it has no jurisdiction to hear and determine the request for review with respect to the subject tender because the subject tenders asset disposal proceedings are not subject to the Act.

” Mumias was not subject to the Public Procurement and Disposal Act because it is not a fully public owned entity,”said The Public Procurement Administrative Review Board.
The five member board said they have no jurisdiction to hear and determine the request for review with respect to the subject tender because the subject tenders asset disposal proceedings are not subject to the Act.
“We find Mumias sugar company does not fit in any of the description of a public entity of the Act because the national government through National treasury neither fully owns nor has a controlling interest in Mumias Sugar because it holds only 20.4 per cent of the shareholding in Mumias sugar, “said the board.
Tumaz filed the request for review saying there was lack of transparency in the manner the tendering process was conducted. 

Recently Court suspended any further leasing of Mumias Sugar Company properties pending the hearing and determination of a suit filed by aggrieved sugar cane farmers.

While giving directions, Justice Winfridah Okwany said that there has been a lot of interference on the revival of the company after the appointment of Ugandan Firm Sarrai Group as a receiver manager by the Kenya Commercial Bank.

The applicants, Gakwamba farmers through their lawyer Danstan Omari filed an urgent application before the commercial court seeking a conservatory order to stop any further interference by either companies that lost tenders or politicians who would want to use the company to gain political mileage.

Justice Alfred Mabeya had on Dec 19, 2021, allowed the appointment of an administrator/ receiver to revive the company.

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