Devki billionaire withdraws bid to lease Mumias Sugar for Ksh5 billion

Mumias Sugar Company. [Photo: Star]

Dr Narendra Raval, the Devki founder has withdrawn his interest in leasing Mumias Sugar Company for Ksh5 billion.

Mumias, the largest sugar miller in the country has been under receivership due to mismanagement that led to losses of billions.

In a statement on Friday, the Devki billionaire said the withdrawal was compounded by public interest.

“Devki Group of Companies wishes to inform the general public that it has withdrawn its bid to lease Mumias Sugar Company Limited (in Receivership), part of the statement read.

Dr Raval said that the new wave of public interest has made him reconsider his decision.

“As a local investor with deep understanding of the local operations, we had expressed interest in reviving the miller, following an invitation by the Receiver Manager,” he stated.

“We will however express interest, should the exercise be conducted in consultation with all the stakeholders,” reads an excerpt of the statement.

He noted that he intended to revive the sugar company and ensure that it is running for the benefit of all the stakeholders including the farmers and the local communities.

“We wish the receiver manager success as they seek the most appropriate method of revival and to take Mumias to the next level,” he added.

Mumias has been on a loss-making spree despite different interventions by the government.

In Jubilee’s first term in office, Ksh2 billion was injected into the firm to bail it out but it did not help much.

Mumias Sugar Company was placed under receivership by the KCB Group in September 2019 to protect its assets and maintain its operations.