Here is why court nullified sugar licenses
The ruling stemmed from a complaint by the Uganda Sugar Manufacturers Association Ltd, which accused the Trade Ministry of 20 violations, including the illegal issuance of licenses and failure to establish the Uganda Sugar Board as required by the Sugar Act.
Kampala’s High Court has delivered a landmark ruling declaring the Trade Minister’s issuance of sugar licenses illegal, shaking up Uganda’s sugar industry.
Justice Douglas Karekona Singiza ruled that the minister unlawfully issued “certificates of no objection” to investors to establish sugar mills, bypassing the Uganda Sugar Board (USB), which is mandated by law to oversee licensing.
As a result, all sugar licenses issued without the USB’s approval are now invalid.
The court further prohibited the establishment of new sugar plantations within 25 kilometers of existing ones. Notably, the licenses granted to CN Sugar Ltd and Shakti Sugar were deemed illegal, with the court ordering both companies to halt operations until they acquire proper licenses.
The ruling stemmed from a complaint by the Uganda Sugar Manufacturers Association Ltd, which accused the Trade Ministry of 20 violations, including the illegal issuance of licenses and failure to establish the Uganda Sugar Board as required by the Sugar Act.
In a decisive move, the court directed the Trade Ministry to establish the Uganda Sugar Board within three months. This regulatory body is tasked with licensing sugar mills and enforcing policies to regulate the sugar industry.
Justice Singiza’s ruling underscores the need for adherence to Uganda’s sugar policy and aims to restore order in the industry.
