The High Court on Thursday dealt a blow to tycoon Tumaz and Tumaz enterprises after one of the cases challenging the 20-year-old lease of Mumias Suga was dismissed with costs.
The ruling also served as a reprive to the firm’s administrator and managers of Uganda’s Sarrai Group from a possible jail term for contempt of court.
Justice Anthony Ndung’u ruled that the suit filed against Uganda firm Sarrai Group and Mumias receiver-manager PVR RAO should be heard at the high court’s commercial section under Justice Alfred Mabeya.
Ndung’u ruled that it had no jurisdiction to hear the matter.
Justice Mabeya is presiding over a similar case filed by five farmers of Mumias Sugar against Rao, Sarrai Group and others.
Tumaz and Tumaz which was one of the bidders in the Mumias lease tender was enjoined in that Case by Justice Mabeya, together with the farmers and West Kenya Sugar Company which was also another bidder in the Mumias lease.
That informed the court’s consolidation of the cases as both high courts cannot claim jurisdiction on the same case at the same time.
The farmers argued that Rao awarded the lease to the lowest bidder Sarrai Group for Sh5.8 billion in an opaque manner.
Tumaz accused Rao of conducting the bidding process with fraud, mistakes and illegalities.
West Kenya through their Counsel Paul Muite wanted Rao to explain why the lease was awarded to the lowest bidder, Sarrai Group.
In its reply affidavit to the court, the Competition Authority of Kenya said that they had not received a lease from either Rao or the Sarrai Group for approval as required by law.
