Sarrai Group Takes Over Mumias Sugar

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Wednesday, December 22, 2021 –Ugandan Company Sarrai Group has taken over operations at the Western Kenya-based Mumias Sugar Company.

A statement was released on Wednesday December 22 by the current Mumias Sugar Company Administrator Ponangipalli Rao who stated that the establishment had been taken over by the Ugandan team(receiver manager) in an open willing buyer bidding process.

This process was made possible through a successful bidding process which lasted for a period of not less than four months; in accordance to the latest court ruling.

“I hereby confirm awarding the Leasing of the assets belonging to Mumias Sugar Company Limited (in Receivership & under Administration) [MSCL] to Sarrai Group, Uganda.

“The Lease is in the interest of all stakeholders and in conformity with the recent Court ruling dated 19th November 2021,” the administrator said.

But even as this establishment is handed over, the ethanol and Cogen plants within the compound will not be given out to  the investor as this is not part of their agreement.

“The group employs over 20,000 employees across its regional business. In the sugar sector, its track record include 20,000 hectares of its own nucleus estates in Uganda, with a sugar production that includes Kinyara sugar, Hoima sugar and Kiryandogo Sugar with a total capacity of 19,000 tonnes crushed per day,” read the statement in part.

Though some sections believed that the Ugandan firm was in away related to the Kenya’s Rai family, this was claimed to be untrue by the administrator.

“Sarrai Group has no association with entities under Rai Group including West Kenya Sugar Company,” read the statement.

On his part, Sarrai Group MD Mr Sarbi Rai noted that his 20 year lease will start with reviving the infrastructural part of the factory before settling on production stage which is crucial.

The Mumias-based factory has had problems emanating from financial and management now for over a decade.