Muthama firm set to resume ruby exports after settling licence row

Former Machakos senator Johnson Muthama. FILE PHOTO | NMG 

By GALGALLO FAYO

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Summary

• Johnson Muthama, who moved to court on grounds that he was incurring millions of shillings in losses after his company Rockland Kenya Limited’s export licence was withheld by the Mining Ministry, has settled the dispute out of court.
• The parties on December 17 marked the file as settled in court, but did not disclose details of the agreement.
• The out-of-court settlement lays to rest a dispute that threatened to ruin a business empire built by the vocal politician.

A mining firm associated with former Machakos senator Johnson Muthama is set to resume exports after settling a dispute over the cancellation of its licence which had paralysed its business.

Mr Muthama, who moved to court on grounds that he was incurring millions of shillings in losses after his company Rockland Kenya Limited’s export licence was withheld by the Mining Ministry, has settled the dispute out of court. The parties on December 17 marked the file as settled in court, but did not disclose details of the agreement.

“We have a consent, this file be marked as settled,” Rockland Kenya Limited’s lawyer told the High Court.

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“Case marked as settled with no orders as to costs,” ordered Justice John Mativo.

Dan Kazungu, who was at the time the Mining Secretary, in September 2017, paralysed Rockland Kenya’s operations with the publication of a list of companies licensed to mine and export minerals that excluded Mr Muthama’s company.

The out-of-court settlement lays to rest a dispute that threatened to ruin a business empire built by the vocal politician.

Mr Muthama had told the court that his firm had been given a special mining lease in 1991 and the same extended in 1996, before it was renewed in 2012 for period up to 2033.

Mr Muthama acquired Rockland from American geologist John Saul, and thereafter got a licence to mine and export ruby — a precious gemstone — in Taita.

Mr Kazungu in September 2017 wrote to the Mining Principal Secretary and the Director of Mines that only three companies were licensed to deal in gold and carry out mineral dealings "other than gold".

Mr Muthama on February 16 got court orders suspending the minister’s directive pending hearing and determination of the suit.