Billionaire Rai family in Mumias Sugar lease race
Thursday June 10 2021
By GERALD ANDAE
The billionaire Rai family is among the eight high-profile investors eyeing a lease deal for the Sh15 billion assets of ailing Mumias Sugar Company, the miller’s receiver-manager has disclosed.
The disclosure of Rai’s bid underlines months of the heated behind-the-scenes fight for the control of the once top miller by wealthy investors including steel tycoon Narendra Raval who has since withdrawn from the race.
Mr Raval, who was planning to inject Sh5 billion to modernise the miller on winning the bid, cited political interests after western Kenya politicians questioned the process.
FARMKENYA INITIATIVE
Mumias sugarcane farmers protest at Shianda in Mumias East on June 4, 2021. They were protesting against politicians from Western who are against an investor who had shown interest in reviving Mumias sugar factory. [Benjamin Sakwa, Standard]
Western Kenya leaders have petitioned President Uhuru Kenyatta and ODM leader Raila Odinga to help unlock the stalemate in attempts to revive Mumias Sugar Company and the struggling sector.
Last week, business magnate and Devki Group founder Narendra Raval withdrew his bid to lease Mumias Sugar after the process drew huge public interest.
The receiver-manager had invited Devki Group to help revive the ailing miller. But Western Kenya sugarcane farmers, several politicians and the Kenya National Alliance of Sugarcane Farmers Organisation opposed the planned takeover, insisting on public bidding. Kenya Commercial Bank placed Mumias Sugar under receivership and the once-thriving miller is a shell tottering on the brink of