Kenya leases Mumias Sugar Assets To Ugandan-based Sarrai Group

The company’s receiver-manager Ponangipalli Venkata Ramana Rao revealed in a statement that the Ugandan company has emerged as the winner of the bidding process that lasted for over four months.

“I hereby confirm awarding of the leasing of Mumias Sugar Company Limited assets (in receivership and under administration) to Sarrai Group, Uganda,” stated Ponangipalli Venkata Ramana Rao.

Mumias Sugar was placed under receivership by the KCB group in September 2019 after it defaulted on loans amounting to 545 million shillings.

It owes the Kenya Revenue Authority 10 million shillings while the Kenya Commercial Bank (KCB Group), who appointed a receiver-manager, 20 billion shillings.

Furthermore, the company owes Proparco 1.84 billion shillings secured using the electricity generation plant, Ecobank 1.77 billion shillings on the Ethanol plant, and 2.83 billion shillings to the Treasury.

According to Rao, the lease is in the best interest of all stakeholders and in conformity with the administrative order issued by Justice Alfred Mabeya on Nov 19, 2021, against the company.

Sarrai Group Chairman, Mr. Sarbi Singh Rai says their immediate focus is investing in the rehabilitation of the machinery back to effective operational status.

They will also engage out-growers and an experienced workforce to ensure effective collaboration to revive the factory.

“…We shall use all our experience and resources to make sure that we receive the company and take it back to the heights it once enjoyed,” he said.