KEBS seeks court order for Kwale International Sugar Company to deposit US$1.04M amid controversy
KEBS has asked the High Court to compel Kwale International Sugar Company to deposit Kes 135 million as security for costs.
KENYA – The Kenya Bureau of Standards (KEBS) has petitioned the High Court in Kwale to compel Kwale International Sugar Company Limited (KISCOL) to deposit Kes 135 million (US$1.04M) in court as security for costs, citing the miller’s financial instability and ongoing insolvency cases.
According to court filings, KEBS moved to court after KISCOL failed to pay taxed costs of Kes 663,810 awarded to the bureau by the Court of Appeal in 2022. The costs stemmed from an earlier constitutional petition filed by the sugar company.
KEBS argued that KISCOL’s precarious financial position makes it unlikely that the costs would be recoverable without such security. The bureau noted that the company is facing multiple insolvency petitions, including Milimani Insolvency Petition No. 007 of 2019 and High Court Insolvency Cause No. E020 of 2021.
“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.
The bureau also raised concerns over alleged asset transfers by KISCOL to related entities, accusing the miller of using proxies to continue operations while avoiding its financial obligations.
The dispute between KEBS and KISCOL dates back to 2018, when the standards body and the Kenya Revenue Authority (KRA) seized about 5,000 tonnes of brown sugar belonging to the company, claiming it was contaminated with mercury and unsafe for human consumption.
KISCOL disputed the findings, maintaining that the sugar had passed earlier quality tests and challenging the sampling methods used. The company secured a temporary injunction to prevent the destruction of its stocks.
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 lack of sufficient evidence.
KEBS is now seeking to secure potential costs ahead of hearings scheduled for October 22–24, 2025.
The move comes shortly after KEBS dismissed public allegations that toxic sugar had been cleared for circulation in the country.
In July, opposition leader Kalonzo Musyoka claimed that 25,000 metric tonnes of contaminated sugar had entered Kenya through Mombasa for repackaging.
KEBS refuted the claims, insisting that all sugar—imported or locally produced—undergoes rigorous inspection and certification before release into the market.
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