State, Miller speaks to settle dispute over tender worth 32 billion shillings


State, Miller speaks to settle dispute over tender worth 32 billion shillings


Quali International Sugar Company Ltd. [KISCOL] Factory in Ramesi Quali Prefecture. picture | Laban and Uga | NMG

The government has 60 days to negotiate down a Sh32 billion claim from Kwale International Sugar Company Ltd (Kiscol) for breach of contract.

The attorneys for the mill and the public prosecutor before Judge Olga Sewe in Mombasa agreed to suspend the sentence awarded to the mill for 60 days to allow talks to take place.

Kiscol sued and won a case against the government for breaching legal and contractual duties over the lease of 15,000 acres of land to grow sugarcane.

This claim adds to the burden on the new Kenyan administration facing mounting legal bills that have grown to a whopping 1.2 trillion shillings.

“The consent was taken as orders of the court and was upheld as part of today’s proceedings,” said Judge Siwe, sitting in Mombasa.

Kiscol, which has sued the Treasury Secretary and AG, is seeking special damages for breaching legal and contractual duties on the 15,000-acre lease to grow sugarcane.

The company won the case after AG failed to respond in time to compel the court to grant Kiscol its claims against the government in a preliminary ruling.

A preliminary ruling is issued when the sued party fails to present a defense of the case within the stipulated time and at the request of the plaintiff (the party that brought a claim).

Prosecutor Kihara Kariuki later asked a Mombasa court to overturn the initial ruling, but she is now considering an out-of-court settlement.

Through Vice President of Litigation Janet Langett, the AG argued that they would face irreparable bias, loss and damage that could lead to economic constraints in a country where the claim is worth billions of billions of taxpayer money.

The Court allowed the Prosecutor’s statement of attendance and defense statement dated May 31 to be considered duly filed and properly recorded. The case will go back to court if the talks fail.

“The delay in presenting the defense was not intentional, but due to the fact that this is a matter of high public interest with a huge financial claim requiring consultation with the various stakeholders who were involved in drawing up the lease agreement which then caused a slight delay,” the AG says.

Kiscol said it has set up a new sugar processing plant on a plot of land within Kwale County and has a sub-lease dated August 20, 2007, between it and the government.

It accuses the government of failing to provide it with full, unimpeded and peaceful tenure of the leased area.

The company says that when it tried to gain access to the land to carry out its project, it found squatters demanding fair rights to occupy parts of the leased area.

According to Keskol, squatters occupied the 5,816-acre leasehold scattered across seven districts.

“The plaintiff’s efforts to gain access to parts of the leased land occupied by squatters were thwarted by court order,” Kiscol says, adding that she was able to get the order canceled on March 13, 2018 before the squatters’ petition was dismissed last January. general.

The Sugar Factory argues that it was an express and implied condition of the sub-lease between the plaintiff and CS National Treasury that he would have complete, unimpeded and peaceful tenure of the land.

Kiscol says that at the start of the project and the award of the sub-lease, the government was informed that the Greenfield project had been designed and built around land availability and unimpeded access.

It also claims that, in violation of the legitimate expectation created by the defendants, it was unable to access the entire leased area and was able to gain access to nearly 50 percent of the leased land.

The case will be mentioned January 23 for a pre-trial trial.

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