A Ugandan firm that won the lease of Mumias Sugar Company equipment might not savour its victory yet after a case was filed in court yesterday to challenge the contract. Court papers show that Tumaz had bid Sh27.6 billion for the lease while Sarrai bid Sh11.5 billion for a similar number of years. One was by sugar farmers who said that as of 2018, they were among creditors owed Sh30.1 billion by Mumias. At the same time, Mumias owed the National Treasury Sh3.1 billion, Sugar Board Sh1.6 billion, EcoBank Sh2 billion and Commercial Bank of Africa Sh401 million. The court papers filed before the commercial court say that an investor had already been picked through a private treaty, thus locking out the possibility of getting more from the miller.

Source: Standard Digital December 24, 2021 10:28 UTC