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Six sugar distributors sue State over Sh173.6m owed by leased mills
['Damaris Gatwiri']
Kahawatungu
Six sugar distributors and other businesses have moved to the High Court seeking to recover Sh173.58 million they claim is owed by three State-owned sugar companies that were leased to private operators.
The petition, filed at the High Court in Nairobi in August 2026, challenges how the creditors’ claims were handled following the leasing of South Nyanza Sugar Company, Chemelil Sugar Company and Muhoroni Sugar Company.
The petitioners argue that financial obligations owed to them remained unsettled after the mills were transferred to private operators.
They are described in the petition as merchants, sugar distributors and, in the case of Procel Transport, a transport and logistics company that had commercial dealings with the affected sugar mills.
The combined claim of Sh173.58 million comprises Sh32.76 million allegedly owed by South Nyanza Sugar Company, Sh75.72 million by Chemelil Sugar Company and Sh65.10 million by Muhoroni Sugar Company.