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.
Continue Reading
Read the complete article from Capital Business
Part of the Day's Coverage
TUK Blames Sh13bn Debt on Years of Underfunding - August 2026
Technical University of Kenya (TUK) has attributed its nearly Sh13 billion debt primarily to unpaid statutory deductions and pension contributions, blaming years of chronic underfunding. The university's financial struggles reflect a broader pattern of government entities accumulating substantial debts. South Nyanza, Chemelli, and Muhoroni sugar companies, leased to private operators, owe six sugar distributors and other businesses Sh173.58 million, prompting lawsuits against the State. Meanwhile, Nairobi City County has been identified as the country's worst-performing county in managing pending bills, with a Parliamentary Budget Office report warning this signals a potential fiscal crisis.
Kenya's news, briefed daily
Daily Briefs with audio, your topics, and breaking stories.
Take Kenya's news with you
Breaking stories, daily briefs, and the topics you follow - on your phone, free.
