The company Rwanda entered a deal with last year to set up a multimillion dollar sugar factory is currently being investigated for importing poisoned sugar in Kenya.
Rai Group Limited a Mauritius company is expected to set foot in Rwanda and construct a $300million sugar factory.
Their entry into the Rwandan market would relieve the country of high sugar prices with the establishment of a multimillion modern sugar processing factory in Eastern Province.
Rwanda has been spending $45million on sugar imports annually – this represents up to 90% of the country’s sugar needs.
The country badly needs to increase its annual consumption from 100,000 tonnes.
Last year the Trade and Industry ministry had indicated that government had already made contact with the investors who were seeking 10,000ha of land on which to grow sugar cane but government was committing only 8,000ha in the deal.
Rai Group limited is currently operating two very successful sugar processing factories in neighbouring Uganda including; the Kinyara sugar works limited and Hoima sugar factory.
As in these factories, Rai Group limited usually generates ethanol production from the by-products of sugar processing and adds megawatts of electricity which can be extended to the national grid.
Rai Group limited is also operating in Kenya as an industrial conglomerate with interests in paper mills, heavy metal industries, and sugar mills. It is Kenya’s second largest sugar miller through its West Kenya Sugar and Sukari Industries subsidiaries in Homa Bay.
However, recently executive directors of Rai group limited have been trailed by the media following Kenya government crackdown on contraband sugar that is contaminated with dangerous chemical substances highly harmful to human life.
Kenya’s Directorate of Criminal Investigations probing the importation and retail of contraband sugar is preparing to arrest brothers Jaswant, Jasbir, Sarbjit and Iqbal Rai all of whom are directors of the multi-billion Rai Group, in whose premises the bulk of the contaminated sugar was found.
This crackdown on contraband sugar team has sent shock waves through the government and political circles as the lucrative trade is a known source of quick profits, especially for those who evade taxes through diversion of transit sugar.