Kampala’s High Court has made a landmark ruling, declaring that the Minister of Trade’s issuance of sugar licenses was illegal.
According to Justice Douglas Karekona Singiza, the minister has been using “certificates of no objection” to allow investors to set up sugar mills, instead of obtaining licenses from the Uganda Sugar Board (USB), as required by law.
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The court’s decision implies that all new sugar licenses issued without the USB’s approval are invalid.
Additionally, the court ruled that no new sugar plantation should be established within a 25-kilometer radius of an existing one.
Justice Singiza declared that the licenses issued to CN Sugar Ltd and Shakti Sugar are illegal and contravene the government’s sugar policy.
The court ordered CN and Shakti to halt their operations until they obtain proper licenses.
The Uganda Sugar Manufacturers Association Ltd had filed a complaint against the Minister of Trade, citing 20 grounds, including the illegal issuance of licenses and the failure to establish the Uganda Sugar Board.
The court also ordered the Trade Ministry to establish the Uganda Sugar Board within three months, as required by the Sugar Act.
This board is responsible for licensing sugar mills and regulating the sugar industry.
