A Kenyan sugar manufacturing company, Kwale International Sugar Company Limited (KISCOL), has lost its third attempt in court to halt an ongoing insolvency case brought against it over a disputed debt of KSh712.5 million.
The High Court in Nairobi dismissed an application by KISCOL seeking to stop EPCO Builders Ltd from prosecuting or publicising the insolvency petition. The firm had also requested the matter be referred to arbitration. READ FULL STORY
The dispute dates back to 2019 when EPCO filed a petition seeking payment for work done on the construction of KISCOL’s sugar factory in Kwale, on Kenya’s southern coast. The construction contract was reportedly valued at KSh2.2 billion, out of which EPCO claims KSh712.5 million remains unpaid.
KISCOL’s application was rejected by Justice Peter Mulwa, who ruled that the matter had already been conclusively dealt with by the Court of Appeal earlier this year. The court said the company was attempting to reopen issues that had already been determined and that the relief sought was no longer applicable.
“The petition is wholly unmerited,” the judge said in his July 10 ruling, clearing the way for the insolvency petition to proceed.
KISCOL is jointly owned by Kenya’s Pabari Group and Omnican Limited, a Mauritius-based sugar producer. The company has been engaged in a lengthy legal battle in a bid to fend off potential bankruptcy proceedings.
In April 2020, its petition to set aside a statutory demand from EPCO was dismissed by the High Court. That decision was upheld by the Court of Appeal in February 2025, which directed that the insolvency case should go ahead.
The company then turned to the Supreme Court in May 2025, seeking to block the proceedings through conservatory orders. That application was also rejected.
The string of court losses now leaves KISCOL facing the possibility of formal insolvency, unless a resolution is reached with EPCO. The outcome could have wide-ranging implications for the factory, its employees, and the broader sugar sector in Kenya.
Neither KISCOL nor EPCO Builders Ltd has issued a public statement following the most recent ruling.
