Uganda’s Sarrai Group Wins Bid to Lease Assets of Mumias Sugar Company

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Sarrai Group has secured the lease for assets of Mumias Sugar Company and the mandate to revive the collapsed sugar miller.

The company’s receiver-manager and appointed court administrator Mr Ponangipalli Rao confirmed the development on Wednesday, 22nd December.

In a statement, Rao noted that the lease is in the interest of all stakeholders and in conformity with the recent court ruling dated 19th November 2021.

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

He however disclosed that the lease does not include the ethanol and the cogen plants.

Although the lessee is not in sugar production in Kenya, Rao says Sarrai Group has a proven track record of running three sugar factories, a distillery, and power generation in Uganda and is committed to commence rehabilitation of assets immediately to ensure the revival of operations within the shortest period.

He said the revival of Mumias Sugar Company Limited will enhance the standard of living of the local community and catalyze growth in the area.

“We hope to see the original glory of Mumias back soon. I thank the Judicial System, National Government, County Government, Local Leaders, my team and the local community for extending warm support in concluding the revival plan to this level,” he added.

Sarrai Group Chairman, Mr Sarbi Singh Rai outlined the firm’s immediate focus. He said investments will be made to rehabilitate the machinery back to effective operational status as well as engagements with outgrowers and an experienced workforce to ensure that there is an effective collaboration to revive the factory.

“Mumias sugar was the most respected sugar company not only in Kenya but the entire region and it is our firm commitment to all the stakeholders that we shall use all our experience and resources to make sure that we revive the company and take it back to the heights it once enjoyed,” he said.

Sarrai Group is a Ugandan-based conglomerate of diverse and inter-related agro-manufacturing companies, with over 20,000 employees, across East and Southern Africa, with operations in Uganda, Kenya and Malawi.

The group employs over 20,000 employees across its regional businesses. In the sugar sector, its track record includes 20,000 hectares of its own nucleus estates in Uganda, with a sugar production that includes Kinyara Sugar, Hoima Sugar, and Kiryandongo Sugar with a total installed capacity of 19,000 TCD (tonnes crushed per day) producing over 170,000 tonnes of sugar per annum with a forecast to produce 250,000 tonnes of sugar in 2022.

The group currently has over 12000 registered and has supported outgrowers through various activities.

The group also produces edible oils and soaps through Tasco Industries in Uganda. In wood processing, the group also produces plywood through Nile Plywoods and Nile Fibre Board in Uganda and Comply Industries Kenya. The group has also invested in cement manufacturing in Kenya through Rai Cement and a mattress production investment in Uganda through Vitafoam Uganda Limited.

The post Uganda’s Sarrai Group Wins Bid to Lease Assets of Mumias Sugar Company appeared first on LitKenya.

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