NAIROBI, Kenya, Sept 1 – The Kenya Bureau of Standards (KEBS) has petitioned the High Court in Kwale to compel Kwale International Sugar Company Limited (KISCOL) to deposit Sh135 million in court as security for costs, following years of protracted legal wrangles.
Court filings show that KEBS filed the motion after KISCOL failed to pay the taxed costs of Sh663,810 awarded to the bureau by the Court of Appeal in 2022, stemming from a previous constitutional petition.
KEBS argues that the miller’s financial instability and ongoing insolvency proceedings make it unlikely the costs would otherwise be recoverable.
“The sum requested is meant to settle costs as per the court’s directives and to ensure justice is served in public interest cases,” KEBS said in its motion.
Documents reveal that KISCOL faces multiple insolvency petitions, including Milimani Insolvency Petition No. 007 of 2019 and High Court Insolvency Cause No. E020 of 2021.
KEBS contends that the company has been transferring assets to related entities and using proxies to continue operations, raising concerns about its ability to meet financial obligations.
“The deposit of Sh135 million is a procedural requirement following the court ruling, aimed at finalizing the costs aspect of the case.”
The dispute dates back to 2018, when KISCOL challenged KEBS over regulatory enforcement, following the seizure of approximately 5,000 tonnes of its brown sugar.
KEBS and the Kenya Revenue Authority (KRA) claimed the sugar was contaminated with mercury and unfit for human consumption.
KISCOL disputed the findings, arguing that its sugar had passed prior quality tests and that the sampling methods used were flawed.
The company sought to prevent the destruction of its stocks, leading to a temporary court injunction.
In 2025, a Mombasa court acquitted 11 individuals, including KEBS and KRA officials, who had been accused of mishandling the mercury-laced sugar case, citing insufficient evidence.
