This archive report was first published on 18 June 2021.
On June 9, 2021, the Senate's Agriculture Committee directed the receiver manager to re-advertise the bid to salvage Mumias Sugar Company within 14 days.
Activist Okiya Omtatah has moved to court seeking to temporarily suspend a directive by the Senate to Mumias Sugar Company's receiver manager, Ponangipalli Venkata Ramana Rao, to invite bids from investors to salvage the troubled miller.
The Senate's directive followed the emergence of a secretive bidding process by the receiver manager to identify a strategic investor for the company.
According to Omtatah, the receiver manager had secretly invited eight investors, including Catalysis Group of Russia, Sarrai Group of Uganda, and Kibos Sugar and Devki Group from Kenya, among others.
However, it has emerged that none of the eight bidders had the capacity to revive the company, leading to fears that a plan was underway to dispose of the company to Rao's cronies for a song.
Omtatah claims that the receiver manager is conflicted, citing his previous role as receiver manager at Kwale Sugar Company, where he sold scrap metal to the purported lead bidder, Devki Steel Millers Ltd.
The activist also alleges that the receiver manager has mismanaged the ethanol operations and shut them down in March 2021, halting all manufacturing operations at the company.
Furthermore, Omtatah claims that the receiver manager has neglected many assets of Mumias Sugar Company, including the Nucleus Estate and machinery, resulting in the company making huge losses due to the deterioration of the assets.
