Jaswant Rai to pay Butali Sugar Sh980 million after the court ruling whereas Kenya Sugar Board will pay Sh420 million for losses incurred when Butali sugar’s license was cancelled in a zoning battle.
By Isaac Mutiso and Aggrey Barasa, Kakamega
It all started with the abduction of sugar baron, Jaswant Singh Rai, who even after his release, it remains a mystery and that belongs to the ‘Rai’ family.
The business mogul who has been controlling nearly half of the sugar sector. He owns West Kenya sugar, Naitiri sugar, Sukari and Olepito sugar spread across Western and Nyanza regions.
But when it comes to the problems bedeviling the industry, its impossible to miss Rai family name in between the lines as part of the problems in the sector.
Rai has fought everybody in the sugar sector and at one point he opposed the setting up of Butali sugar company as well as the revival of Mumias sugar company.
Jaswant Rai, and brother Sarbjit Singh Rai of Uganda’s Sarrai Group have been fighting for control of Mumias Sugar.
Sarbjit managed the sugar mill about one year ago, but Rai contested the lease arrangement in court and moved to court until President William Ruto waded into the war and insisted that he (Ruto) will not allow the Rai brothers to hinder efforts to revive the factory.
“You have three choices: leave Kenya, face jail, or go to heaven,” said Ruto and ordered anyone who had filed a case against the miller to withdraw it.
“We shall not entertain any court case again,” said Ruto during his tour of Western region.
Vartox Resources Inc, based in Dubai and Rai have since withdrawn the cases they had filed against Mumias sugar.
Rai opted out of Mumias Sugar lease cases both at the Commercial Court and the Court of Appeal,
From abduction to his mysterious release to the withdrawal of court cases against Mumias- it was not over for Rai.
“On the totality of the evidence on record, the plaintiff has proved its case on a balance of probability. Judgement is entered for the plaintiff against the 1st defendant for Ksh.507,799,612. The first defendant is entitled to indemnity against the second defendant to the tune of 30 per cent on the damages,” the ruling reads in part.
The High Court has dealt him another huge blow after Justice Alfred Mabeya ordered the sugar baron to pay Butali Sugar Limited over Ksh.507 million in damages.
In the case, Butali Sugar Mills Limited filed a case against West Kenya Sugar and Kenya Sugar Board in 2007 over sugarcane zoning.
Butali sugar sought Sh590 million being losses incurred over unlawful interference with smooth running of its business.
Justice Alfred Mabeya in his ruling said that Butali Sugar Mills Limited had proved its case on a balance of probability.
“On the totality of the evidence on record, the plaintiff has proved its case on a balance of probability. Judgement is entered for the plaintiff against the 1st defendant for Ksh.507,799,612. The first defendant is entitled to indemnity against the second defendant to the tune of 30 per cent on the damages,” the ruling reads in part.
“Butali sugar is entitled to damages of Sh507,799,612 as damages for the loss suffered as a result of interference of its business,” ordered Justice Mabeya
Judge Mabeya ruled that the amount shall attract an interest of 12 per cent per annum from the date the suit was filed on March 30, 2007.
In total, Rai will pay Butali sugar Sh980 million and Kenya Sugar Board will pay Sh420 million for the losses incurred when Butali sugar license was cancelled in a zoning battle.
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