Sugarcane miller, West Kenya
Company, has taken on industry regulator, Kenya Sugar Board (KSB),
for what it terms unfair licensing conditions. The company has moved to court
seeking to overturn an order by KSB preventing it from setting up a cane buying
centre at Nyando sugar belt in South Nyanza.
The zoning battles are not new for the sugar millers who last year were
involved in unending tussles with rival, Mumias Sugar Company, over control of
the Busia sugar belt. West Kenya lawyer Raymond Olendo has faulted the
directive contained in a circular dated August 15, lasr year, threatening
withdrawal of its license for failing to comply with the directive, adding
it is illegal and unconstitutional. Olendo says the regulator is wrong
to purport to enforce industry harvesting framework as though sugar zones still
exist when the board licensed construction of another factory, Butali Sugar
Mills in Kabras.
“The board is discriminately forcing my client to adhere to an impractical
cane harvesting framework and non-compliance is threatened by withdrawal of his
license,” says Olendo. The application filed on March 14, will be mentioned on
April 29, before Justice George Dulu in Kakamega. West Kenya is seeking orders
to overturn the board decision. It says the board has acted in excess of its
powers by threatening to withdraw their operating licence. It says the
purported cane harvesting framework has no legal basis because only the
minister should publish regulations to enforce the framework.
Olendo says the directive to enforce the framework constitutes an unlawful
attempt to impose sugar zones contrary to Section 4 and 6 of the Sugar Act 2001
that do not empower the board to meddle with or interfere with contractual
obligations and business operations of millers and cane growers. He argues the
board’s decision contravenes section 16(5) and (6), which allows millers to
offer extension or other services growers and to conduct business in accordance
with the Sugar Act.
He says the harvesting framework has not been made in accordance with
sections 32 and 33 of the Sugar Act 2001. Olendo says the board contradicted
itself by purporting to enforce the zones it has severally said in court cases
involving West Kenya and other millers, it has no legal powers to designate
sugar zones.
Courtesy: Standard Digital
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