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HomeEconomyCorporateMumias Suagr investor begins work after Odinga directive

Mumias Suagr investor begins work after Odinga directive

Mumias Suagr investor begins work after Odinga directive

The new Mumias Sugar investor, Sarrai Group has kicked off work in what could appear as the miller’s revival after it stopped producing sugar for three years now.

This is despite a court order which was issued on December 31 last year due to an investor controversy that has rocked the miller after it was placed under receivership in September 2019.

According to Business Daily, Sarrai Group, a Ugandan-based company has been on site since December 24 last year and has held a series of meetings with the management.

While at Bukhungu Stadium in Kakamega County on December 31, Orange Democratic Movement (ODM) party leader Raila Odinga asked the investor to ensure the troubled miller starts operating to the economic benefit of the country.

“I have told the new investor that Mumias should start producing sugar in six months,” said Odinga.

Odinga’s call came three days after top bidders protested Mumias leasing to a Ugandan company.

Kruman-Finances and Tumaz & Tumaz argued that Sarrai Group, which runs three sugar factories in Uganda– was least qualified to be awarded the deal on grounds that it was not the highest bidder in the process.

Kruman-Finances which was second highest wanted a 25 year-lease with Ksh.19.7 billion offer.

Last week, the court stopped miller’s receiver-manager from continuing with the leasing until the case filed by Tumaz and Tumaz, a company owned by businessman Julius Mwale, is determined.

The case is slated for January 24, 2022.

KCB Group placed Mumias sugar under receivership in September 2019 with the aim of recovering billions of shillings it is owed by the struggling sugar firm.

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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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