Billionaire Offers Ksh5 Billion to Save Mumias Sugar Company

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Devki Group Chairman, Narendra Raval, seated in his Ruiru Office.
  • Devki Group Chairman, billionaire Narendra Raval is staking a multi-billion claim in reviving the once thriving Mumias Sugar Company.

    Raval plans to inject Ksh5 billion into the sugar miller that ceased operations in September, 2019 over unpaid loans.

    In the  leasing plan, Ksh4 billion will be used to revamp the run down processing plant while Ksh1 billion will be used as incentive to lure farmers back to sugarcane farming.

    The business mogul intends to pay monthly dues owed to banks, meet running expenses of the plant and pay farmers.

    Devki Group Chairman, Narendra Raval, seated in his Ruiru Office.
    Twitter

    He is among the eight individuals who have been shortlisted over the taking over of Mumias through leasing.

    While speaking to Business Daily, he indicated that he was keen on creating employment in the region that has suffered due to the collapse of their lifeline.

    “My main objective will be to revive the factory and give back the livelihood to over a million people who relied on the firm.â€

    The firm was put under receivership by Kenya Commercial Bank (KCB) in September 2019 to protect its assets and maintain operations.

    The company that secures the  leasing contract will run the frim and pay KCB a sum total of Ksh545 million over a period of 15 years.

    It has been plagued by a series of challenges ranging from mismanagement, sugarcane shortages and cash flow constraints.

    Raval made his first billion in steel manufacture before joining the cement industry. This will be his first major investment in the agriculture sector.

    Devki Group is the largest manufacturer of steel products in East and Central Africa. In 2015, Raval was listed as among Africa’s richest with an estimated value of Ksh65 billion.

    Raval is known for his philanthropy, and supports a string of orphanages in the country.

    Mumias Sugar
    Mumias Sugar
    kenyagist.com
  • Source: KENYAGIST.COM

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