Billionaire Raval’s Withdrawal From Mumias Deal Triggers Protests

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Kakamega senator, Cleophas Malala speaking at an earlier event. Source: Facebook
  • Farmers in Mumias are protesting to express their dissatisfaction after billionaire Narendra Raval of the Devki Group of Companies withdrew a bid to revive the ailing sugar company. 

    Sugarcane farmers while taking to the streets in Mumias have accused politicians of frustrating the takeover.

    “Politicians only want farmers to continue suffering yet there was light at the end of the tunnel through the leasing process that was initiated by the receiver-manager,†Salasia stated.

    Kakamega senator, Cleophas Malala speaking at an earlier event. Source: Facebook

    Politicians from western Kenya had voiced their concerns over the deal claiming to be left in the dark. 

    Last week Kakamega senator, Cleophas Malala wrote to the Ministry of Agriculture seeking details of the lease to be made clear. A move that is seen to have triggered Raval to withdraw the bid. 

    The tycoon had expressed interest in reviving the miller with the injection of an initial capital of Sh5 billion into the debt-ridden firm. 

    On Friday, June 4, Raval’s company released a press statement where it announced it had withdrawn its bid after calls for a publicly run bidding exercise.

    Devki statement on Withdrawal from Mumias Sugar Company revival deal. Source: Facebook
    Devki statement on Withdrawal from Mumias Sugar Company revival deal. Source: Facebook

    Mumias Sugar Company was placed under receivership by KCB Group in September 2019 after falling into debts so as to protect its assets and maintain operations. 

    Under the leasing deal, Devki was to settle Ksh545 million debt owned by the miller to the bank and run the once giant sugar company for a period of 10 years.  

    The withdrawal announcement came as a shocker as many farmers were hoping to start trading again with the miller that was once the economic backbone of the region. 

    The farmers said they were excited by the possible investment but they felt  betrayed by local politicians, who continuously opposed the bidding process

  • Source: KENYAGIST.COM

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