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Originally published by Capital Businessbusiness
August 7, 2026
4h ago
Sugar distributors sue State over Sh173.6mn debt

Their combined claim stands at Sh173.58 million, comprising Sh32.76 million owed by South Nyanza Sugar Company, Sh75.72 million by Chemelil Sugar Company and Sh65.10 million by Muhoroni Sugar Company...
✨ Key Highlights
Six sugar distributors and other businesses have sued the Kenyan State over Sh173.58 million owed to them by South Nyanza, Chemelli, and Muhoroni sugar companies following their lease to private operators.
- The total outstanding debt claimed is Sh173.58 million.
- The petitioners include Lesphine Investments Limited, Patel Chimanlal, Chebaibai Traders Limited, Mahendrabhai Jethabhai Patel, Procel Transport Limited, and Axabd Investment Limited.
- The lawsuit challenges the handling of creditors' claims during the 30-year leasing of these state-owned sugar companies, which were leased in May 2025.
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