The Ugandan-registered Sarrai Group suffered yet another blow on Tuesday after the High Court in Kakamega declined to issue fresh orders vacating an earlier decision to suspend its lease of the Mumias Sugar Company.

The court had issued the suspension order on January 11 in a suit filed by Kakamega County.

In a ruling on Wednesday, Justice William Musyoka stated that from the documents before the court, he did not find sufficient cause to issue orders sought by the plaintiff (Kakamega County) because the issue of conflicting orders was alive.

Justice Musyoka further directed that all parties in the case submit their documents to court and that the applications and preliminary objections by the lawyers representing both sides be heard together.

Lawyers Javier Munzala and Maureen Nasimiyu represented Tumaz in the lease case while James Orengo, Wesley Gichaba and Irene Kashindi appeared for Kakamega County, Sarrai Group and management consultancy PVR Rao respectively.

The matter will be heard in Kakamega High Court on January 28.

Justice Musyoka had determined that the county failed to disclose that Tumaz had already received orders from Milimani High Court on December 29, 2021 suspending the Mumias lease to the Ugandan firm.

He ruled that no other orders can be issued contradicting lease suspension say orders issued to Tumaz in Nairobi.

"Order of stay in Nairobi HCJR/E178/2021 was not exhibited to the motion herein dated 7/1/22 when it was placed before me on 11/1/22, yet the same was relevant to the extent that it relates to the same lease that is the subject of the motion dated 7/1/22," Justice Musyoka determined on January 12.

He added: "The order of 29/12/21 should have been disclosed by the applicant (County), and since it cannot be possibly in operation at the same time with the order that I made herein on 11/1/22, and being the first in time and to avoid a scenario of conflicting orders, I hereby vacate and discharge the order of 11/1/2022."

The reversal of the orders dealt a blow to the county which had filed a suit in support of the Ugandan firm.

On January 10, High Court judge Justice Anthony Ndung'u issued a warning to the parties in Mumias lease to stop disobeying lease suspension orders he issued on December 29, 2021.

The orders were issued after Tumaz moved to High Court to challenge the Mumias bidding process by PVR Rao, claiming that the process was done in secrecy and was marred by "fraud, mistakes and illegalities".

Justice Ndung'u further ordered Tumaz to serve contempt of court application to Sarrai and Rao for a hearing on January 24.

Tumaz filed to jail Sarrai directors and Rao for disobeying the lease suspension orders.

The firm associated with Mwale City investor Julius Mwale was the highest bidder having placed a Sh27.6 billion bid compared to Sarrai Group's Sh11.5 billion according to court papers.

France's Kruman Finances which was the 2nd highest bidder with Sh19.6 billion also protested the lease award to the Ugandan firm associated with the Rai family which owns Uganda's second-largest miller through Kinyara Sugar Works.

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