Jaswant Rai: Embattled Billionaire Slapped With KSh 507m Fine After Losing Legal Battle Against Butali Sugar

• Jaswant Singh Rai-owned West Kenya Kenya Sugar Company had in 2005 moved to protest the license issued to Butali Sugar Mills Limited
• Butali Sugar challenged the subsequent actions by the Rai-owned company, arguing that it had interfered with its business, thus occasioning huge losses.
• Justice Alfred Mabeya of the Commercial and Tax Division of the High Court ruled that Butali Sugar had proved its case against West Kenya on a balance of probability.

Nairobi - Embattled sugar baron Jaswant Singh Rai has lost a 15-year legal battle against his rival Butali Sugar Mills Limited.

Jaswant Rai's trouble deepens

Following a protracted court battle, Rai-owned West Kenya Sugar Company was ordered to pay Butali Sugar Mills KSh 507 million in damages after the former was found guilty of interfering with the operations of their rival, Nation reported.

On Friday, September 1, Justice Alfred Mabeya of the Commercial and Tax Division of the High Court ruled that Butali Sugar had proved its case against West Kenya on a balance of probability.

"On the totality of the evidence on record, Butali has proved its case on a balance of probability," Justice Mabeya said his ruling that was delivered virtually.

In his final orders, Justice Mabeya said Butali Sugar Mills Limited was entitled to the damages amounting to KSh 507,799,607 with interest at 12% per annum.

"Upon considering the submissions from both parties, I find that the plaintiff has proved its case and is entitled to the damages for the loss suffered as a result of the defendant's interference with its operations.

The sum of KSh 508 million shall attract interest at the rate of 12 per cent per annum from the date of the suit until payment in full," Mabeya orderd.

Why Butali Sugar sued West Kenya

The protracted litigation between the two leading sugar companies began in 2005 after the Rai-owned firm opposed the registration of Butali Sugar Mills, claiming it was within a 24-kilometre radius of their KSh 4 billion operations.

The Rai-owned company also secured a court order stopping any operations and business transactions by Butali Sugar pending case determinations.

However, in 2006, West Kenya withdrew the case after entering into a consent agreement with the Kenya Sugar Board. They agreed not to grant a licence to Butali Sugar Mills.

Aggrieved by the consent, Butali moved to court challenging the consent, arguing that it had interfered with its business, thus occasioning huge losses.

Rai drops cases against Mumias Sugar Company

The latest development comes a day after the Rai Group chairman applied to remove his case against Mumias Sugar Company at the appellate court.

Jaswant addressed a notice to the court seeking to give up his bid to block the Uganda-based Sarrai Group from taking over the Kakamega-based sugar mill on lease terms.

Through three notices of withdrawal filed at the Appellate Court and one at the High Court dated August 30, he said he has discontinued and withdrawn the claims.

In one of the insolvency cases filed by Kimeto and Associates Advocates in 2019, in which West Kenya Company and Jaswant were named as interested parties and applicants, Rai has applied to discontinue and withdraw their claim in the suit.

Jaswant's withdrawal of the case came days after President William Ruto resolved to take head on the supposed cartels stifling the sugar industry for their own gain.