The High Court on Friday, September 1 ordered businessman Jaswant Rai to pay Butali Sugar Limited Ksh 508 million in damages.
Butali Sugar Mills had moved to court in March 2007 to sue the Rai-wwned West Kenya Sugar Company for interfering with its operations.
The West Kenya Sugar Company had opposed the registration of Butali Sugar Limited saying its was within twenty four kilometer radius of their operation.
The rivalry between the two sugar companies has continued for many years with attempts for arbitration failing.
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Justice Alfred Mabeya in his ruling said Butali proved its case against West Kenya and awarded them the damages.
"On the totality of the evidence on record, Butali has proved its case on a balance of probability, "Justice Mabeta ruled.
He added, "The sum of Sh508 million shall attract interest at the rate of 12 per cent per annum from the date of the suit until payment in full.”
The ruling comes a day after Rai withdrew a case challenging the lease of Mumias Sugar Company filed before the Court of Appeal and the High Court.
The withdrawal came after President William Ruto asked people he called "cartels" to withdraw cases they had filed against Mumias or face action.
“Hawa wakora wote watoke. Hio kampuni ni ya wananchi na tutaipangia upya. Hakuna kesi tutaentertain hapo. Kesi watoe na wao wenyewe watoke.
“Wakitaka kuniletea kisirani either wahame Kenya ama nitawaweka jela ama wasafiri waende mbinguni,” said Ruto during his tour to the Western region.
Rai was also allegedly abducted by unknown people on Friday last week in Kilimani, Nairobi and was released two days later.
