Sugar magnate Jaswant Rai has been dealt a significant blow as a Nairobi court has ruled that his West Sugar Company must compensate Butali Sugar Limited with a hefty sum of over Ksh.507 million in damages.

This legal battle dates back to 2007 when Butali Sugar Mills Limited took legal action against West Kenya Sugar and the Kenya Sugar Board over a zoning dispute. They sought Ksh.590 million to cover the losses incurred due to the unlawful interference with their business operations.

Justice Alfred Mabeya, in his ruling, stated that the evidence presented during the trial clearly demonstrated that Butali Sugar Mills Limited had successfully made their case with a high degree of probability.

As a result, the court has ordered the 1st defendant (West Sugar Company) to pay Ksh.507,799,612 to the plaintiff (Butali Sugar Limited). Additionally, the 1st defendant can seek indemnity from the 2nd defendant (Kenya Sugar Board) for 30% of the damages.

Furthermore, the awarded sum of Ksh.507,799,612 will accrue interest at a rate of 12% per annum from the date of the lawsuit until it is paid in full. The plaintiff will also be entitled to recover the costs associated with the lawsuit.

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