Sarrai Group Ltd Faces Jail Term for Disobeying Court Order in Mumias Sugar Dispute

Uganda-based Sarrai Group Limited and its officials have been slapped with a fine of Sh100,000 each for disobeying a court order directing them to cease operations at Mumias Sugar Company.

High Court judge Dorah Chepkwony found the company and its owner Sarbjit Singh Rai, Rakesh Kumar Bvats and Stephen Kihumba guilty for disobeying court orders issued on July 28, last year, directing them to stop any operations at the former giant miller.

“That Sarrai Group Ltd do pay a fine of Kshs one hundred thousand as a penalty for being in contempt of court by willfully disobeying the orders of this court issued on 28th July, 2022 and forthwith purge its contempt with 15 days from the date hereof,” the judge said.

Sarrai Group ltd won a 20-year-lease to operate Mumias Sugar Company but it was challenged by various parties over secrecy and how the administrator PVR Rao settled on the Uganda-based firm.

While cancelling the lease, Justice Mabeya directed Kereto Marima to take charge at the troubled miller but KCB and Rao moved to the Court of Appeal and obtained temporary orders, suspending Mabeya’s decision.

The court further directed the officials to personally appear before the presiding judge of the Commercial Division of the High Court Alfred Mabeya on May 18, and show cause why they should not be committed to jail for six months.

The court, however, dismissed the application by Gakwamba farmers seeking to the file to be sent to the Chief Justice Martha Koome to appoint a bench of more than two judges to determine the matter.

“Therefore, in this court’s view, no substantive issue in law has been raised and neither has there been an issue touching on the rights of the parties herein that cannot be determined by a single Judge raised to warrant the empanelment of a bench of judges by the Chief Justice and hence the application dated 22nd November, 2022 fails and is hereby dismissed,” ruled Judge Chepkwony.

The judge there have been various attempts to interfere with the court supervised administration of the Mumias Sugar Company by various vested interests.

She said the interests include politicians and sugar barons, who have employed direct threats, intimidation and interference even to judges presiding the case, creditors and parties to the proceedings.