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HomeEconomyCorporateMumias Sugar Company Receiver Manager restarts leasing process

Mumias Sugar Company Receiver Manager restarts leasing process

Devki withdraws bid to lease Mumias Sugar Company

Mumias Sugar Company receiver manager Ponangipalli Venkata Rao has restarted the leasing process of the sugar miller.

He was given more time by the Senate Standing Committee on Agriculture in July 2 following the lapse of the two weeks period he was given to advertise for bidders for the leasing of the loss-making miller.

PVR Rao said he needed more time to finalize the documentation of the bids for the former giant sugar miller, which was placed under receivership by the Kenya Commercial Bank Group (KCB) in September 2019.

He has now invited fresh bids from investors, latest by 10 am on August 31, 2021 through a public notice published in one of the local newspapers.

The rundown state miller’s assets are expected to be leased out on an ‘as-is-where-is’ basis with interested parties being allowed to inspect the conditions of the assets.

Also Read:

  1. Devki withdraws bid to lease Mumias Sugar Company
  2. Mumias Sugar receiver manager gets more time before advertising leasing bid
  3. Mumias sugar company to resume operations on Monday

This process is expected to breathe in new life through the modernization of key infrastructure and efficient management.

The winner of the bid is expected to agree with the receiver manager on the leasing period and monthly lease rent.

Previous attempt to lease the firm was by manager was Devki Group of Companies who withdrew from the process in June this year  when he cited public fallout.

In a statement, Dr. Narendra Raval, the Chairman of Devki Group of Companies 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.

The leasing out of Mumias Sugar assets has the backing of government from a recent task force report.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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