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Kenya’s Mumias Sugar Brand Returns to Market After 10 Years

2 Min Read

Ten years of no production have finally come to an end at Kenya’s giant sugar producer Mumias Sugar Company.

According to local press in Kenya, Mumias sugar brand is back on the shelves as east Africa’s largest economy has suffered inadequate supply and had resorted to expensive imports.

Mumias Sugar Company has a capacity to process 8,000 tonnes of sugarcane a day and a cane-growing nucleus of 4,000 hectares, the largest in the country.

Two of the Rai brothers —Jaswant Rai of Kabras Sugar and Sarbi Singh Rai of the Sarrai Group– are now battling for a share of the sugar market after the latter was awarded the lease to revive Mumias.

Sarbi Singh Rai is one of the five sons of Tarlochan Singh Rai who died in December 2010, but they fell out over the distribution of the wealth left by the patriarch, forcing him to move out of the Rai Group whose chairman is Jaswant.

Mumias was in September 2019 placed under receivership by KCB Group to protect its assets and maintain its operations.

The lender has been barred from auctioning the plant to secure assets used as security for other loans, prompting it to turn to the lease option.

Mumias owes Proparco Sh1.84 billion secured using the electricity generation plant, Ecobank Sh1.77 billion on the ethanol plant, and the Treasury Sh2.83 billion.

Other banks it owes more than Sh3 billion include KCB, NCBA and Stanbic Bank.