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Rai Ordered To Pay Butali Sh507mn In Damages Over Unlawful Interference

 

The Commercial Court has ordered sugar baron Jaswant Rai to pay Kakamega-based Butali Sugar Limited Sh507 million in damages over unlawful interference in the mill’s business.

In a verdict rendered on Friday, Justice Alfred Mabeya agreed that Rai’s West Kenya Sugar Company disregarded a zoning plan in a suit that also roped in the Kenya Sugar Board. 

“Accordingly, on the totality of the evidence on record, the plaintiff has proved its case on a balance of probability. Judgement is entered for the plaintiff against the 1st defendant for Ksh.507,799,612. The 1st defendant is entitled to indemnity against the 2nd defendant to the tune of 30 per cent on the damages,”Justice Mabeya ruled.

Butali had asked the court to award it Sh590 million being losses it incurred from West Kenya’s unfair practices.

Justice Mabeya said the amount awarded will attract a 12 per cent interest rate per annum.

“The sum of Ksh.507,799,612 shall attract interest at the rate of 12 per cent per annum from the date of the suit until payment in full. The plaintiff will have the costs of the suit.”

The decision came days after Rai dropped an appeal challenging the leasing of Mumias Sugar, a State-Owned Enterprise, whose wars have been blamed on a sugar cartel linked to the businessman.   BY  CAPITAL NEWS 

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