This archive report was first published on 11 October 2021.
On October 11, 2021, eight companies submitted bids to lease Mumias Sugar Company, a troubled sugar miller under receivership.
The firms vying for the lease include Pandal Industries, KE International (US), West Kenya Sugar, Sarrai Group (Uganda), Krumen Finances, New Mumias Sugar/Devki Group, Kibos Sugar, and Fredrick Coombes/Sucriere Des Mascareigmes Ltd.
KE International, a US-based firm, topped the list after submitting a bid of Sh27.6 billion for a 20-year lease, according to Mumias Sugar Company receiver-manager Ponangipalli Rao.
Kruman Finances, associated with French and Turkish investors, was the second-highest bidder, offering a bid of Sh19.7 billion for a 25-year lease, followed by Sarai Group (Uganda) with a bid of Sh11.5 billion for a 20-year lease.
The three firms want to lease the sugar miller for 20 years, while the others have varying lease terms.
Before the suspension of the earlier bidding process, Devki Group wanted to inject Sh5 billion into the company but withdrew after protests.
West Kenya Sugar placed a bid of Sh3.5 billion for a 20-year lease, while a Mauritius-based company, Sucrie Des Mascarelgnes Ltd, participated in the bidding but did not disclose its bid value.
“What is remaining is to carry out the technical and financial evaluation of each of the bidders to ascertain whether they can run the sugar miller as per the bids submitted,” said Kakamega Senator Cleophas Malala.
