Mumias Sugar company [Photo/Courtesy] Former military man Julius Mwale has offered Ksh27.6 billion in a bid to acquire struggling Mumias Sugar Company, dwarfing offers by businessman Narendra Raval and the Rai family.
Raval through Devki Group had offered Ksh8.4 billion while the Rai family through West Kenya Sugar had offered Ksh3.5 billion.
Tumaz and Tumaz enterprises, associated with Mwale is now the highest bidder for the miller, which was placed under in September 2019, after failing to service its loans.
The Kenya Commercial Bank (KCB), which is owed Ksh545 million, appointed Ponangipalli Venkata Ramana Rao of Tact Consultancy Services as the loss-making company’s receiver-manager.
This is after attempts by the government to bail out Mumias Sugar failed. Most of the bailout money is said to have been misused by senior managers.
Read: How Rai Family Scuttled Dream To Revive Mumias Sugar Company Through Politicians
Devki Group has already withdrawn its bid to lease troubled miller citing a call for a public bidding as the main reason for the withdrawal.
By the time Mumias Sugar Company was placed under receivership, it owed creditors at least Ksh11 billion.
Mumias owes Proparco Ksh1.84 billion, Ecobank Ksh1.77 billion, and the Treasury Ksh2.83 billion. It owes KCB, NCBA and Stanbic Banks more than Ksh3 billion.
Others who had submitted bids to lease the miller include Kruman Finances (Ksh19.7 billion), Transmara Group (Sarai) (Ksh11.5 billion), Pandhal Industries (Ksh9.7 billion) and Kibos Sugar (Ksh8.8 billion).
Sucrie Des Mascarelgnes Ltd, a Mauritius-based company, did not disclose its bid amount. Email your news TIPS to email@example.com or WhatsApp +254708677607. You can also find us on Telegram through www.t.me/kahawatungu