Devki withdraws bid to lease Mumias Sugar Company

Devki withdraws bid to lease Mumias Sugar Company

Devki Group of Companies has withdrawn its bid to lease Mumias Sugar Company, which is currently under receivership.

In a statement, Dr. Narendra Raval, the Chairman of Devki Group of Companies has said “…given the ongoing public interest which the matter has attracted and the call for a publicly run bidding exercise, we have found it worthwhile to take out our application.”

“We will however express interest, should the exercise be conducted in consultation with all the stakeholders.” Dr. Raval added.

While wishing the receiver manager success, Dr. Raval said the manufacturing group expressed interest in reviving the sugar miller following an invitation by the Receiver Manager.

He said, “Our interest in the company is to revive it and ensure that it is running for the benefit of all the stakeholders including farmers and the local communities.”

The announcement comes on the back of calls for transparency and accountability in the manner in the proposed takeover of Mumias Sugar Company.

Among the leaders who have called for transparency is Amani National Congress (ANC) Party Leader, Musalia Mudavadi.  

“As KCB or the receivers look at the possibility of getting investors, we want to emphasise that the process is done above smoothly board because whoever that investor is, he will need the goodwill of the farmers and the public.” Said the ANC Party Leader and Presidential hopeful.

Mudavadi’s call was followed by that of Kakamega County Senator, Cleophas Malala who, speaking on the floor of the Senate, called for the process of Mumias Sugar Company’s takeover to be done transparently and procedurally.

“We as leaders of Western region are not opposed to any investor taking over Mumias Sugar Company because that has always been our interest to rescucitate the sugar mill in Mumias Sugar Company. But we want accountability. We want the people of Western Kenya to know who is this person that is coming to take over Mumias Sugar.”

Bungoma Senator, Moses Wetangula further called for more disclosure on how debts owed to cane outgrower farmers would be handled.

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