Rai family to lease prime Mumias sugar nucleus estate – Weekly Citizen

The controversial Rai family that runs West Kenya Sugar Company in Kakamega county is planning to lease Mumias Sugar Company nucleus estate by proxy.
According to sources well versed with the plan, once they land the control of the nucleus sugar estate, with sugar zoning not in place, they will be able to get supply for their local sugar mill.
Mumias Sugar Company has advertised the leasing of what they call non-core properties to private entities. Apart from the nucleus estate, also to be sold are the water bottling plant and the sugar miller’s power generation plant.
For the nucleus estate, the plan is to develop sugarcane on the farms for delivery to the factory. Players in the sugar industry say only established millers such as West Kenya, Butali and Kibos Sugar can undertake such project.
The Rai family has of late been using their political networks to acquire land in such developments. It has been close to the first family since Mzee Jomo Kenyatta time.
Today, the link between Kenya’s most powerful family and the Rai family is the Uhuru Kenyatta’s younger brother, Muhoho Kenyatta.
Other than the Kenyattas, the Rai family is believed to have had close ties with presidents Daniel Moi and Mwai Kibaki
Insiders say the Rai family acquired Pan Paper Mills located in Webuye, Bungoma county in 2017 using the political connections. Now renamed Rai Paper Mills, the Pan Paper Mills acquisition was shrouded in mystery, with the bid price leaving a trail of unanswered questions.
The privileged Rai family was thrown in the limelight after acquiring the troubled paper miller for a paltry Sh900 million. Then valued at Sh18 billion, Pan Paper was indebted to the tune of Sh10 billion by the time it was placed under receivership in 2009.
At the moment, the paper mill’s production has stalled and the only time it was heard of was during the controversy surrounding the multi-billion sugar importation.
The Rai family was linked to importation of illegal sugar by Agriculture cabinet secretary Mwangi Kiunjuri. Also featuring in the sugar importation fiasco was Uhuru’s brother Muhoho.
Since Kiunjuri’s bombshell, Uhuru has always been attacking the CS in public with claims he was used by William Ruto’s camp to divert the investigations.
The Rai Group is Kenya’s second largest sugar miller through its West Kenya Sugar and Sukari Industries subsidiaries in Homa Bay.
It is also Uganda’s second largest miller through Kinyara Sugar Works, besides having interests in edible oils, fats and soaps (Menengai Oil Refineries), saw milling (Timsales), wheat farming, horticulture and real estate (Tulip Properties).
In the league of Kenyan billionaires, the Rai family sits near the top — and of late has made a fortune from the sugar business.

With the famous March 9 2018 handshake, the Rai family is said to have reached out to ODM leader Raila Odinga to cut deals.
With Raila’s influence, the family is associated with the acquisition of Yala Swamp land to develop sugarcane. Already, the Siaya county government has kicked off survey exercise to mark the boundary between the community and investors land in vast swamp.
It is said Raila petitioned Siaya governor Cornel Rasanga to have Rai get the land that was initially run by Dominion Farms. The American investors were chased away by Raila and local politicians who wanted a share in the establishment and demanded money every weekend.
Already, the survey exercise according to county executive committee member for lands Odhiambo Wakia has a budget of Sh2.5 million and will have residents of Yimbo, Alego and Usonga regain part of the swamp.
The Rai family will have 3,700 hectares at the vast swamp that traverses Siaya and Busia counties. National Land Commission had recommended the county to have clear boundaries and petitioned Siaya county assembly to fast track the process.
Back to Mumias Sugar, which borders Yala Sugar zone, insiders say with sugar harvested at Yala, and with Rai family in control of the nucleus estate, it will be easy to poach sugarcane to their establishment since they will be the ones tasked with providing security.
Other properties Mumias wants to lease are a new modern block with elevator, cafeteria, parking lot and a supermarket.
The firm’s golf club, guest house, the famous Booker Academy both primary and secondary, housing estate and medical centre are also targeted. The Mumias Sports Complex that has a stadium, bar, restaurant, library and gymnasium are also in the plan of leasing.
According to wellplaced sources, Energy PS Joseph Njoroge is eyeing to lease 34.2 megawatts co-generation plant in the factory that is set to be leased.
Mumias’ Sprinkles water produced by the miller’s water bottling plant that sells 3 million pieces of assorted bottling water is being targeted by a leading supermarket in the lease programme.
Trading as Rai Group, the billionaire Rai family also runs RaiPly, makers of chip boards, ceilings, block boards, parquet and wooden tiles and polythene bags for sugar companies.
Kenya’s largest agro-forestry concern, Rai Group has spread its tentacles to Uganda, Tanzania and Malawi, where it is the biggest wood processor.
The Rai empire is an assortment of six easily recognisable members, out of which Safari Rally enthusiast Tejveer Rai, is the most well-known to the public.
However, the engine that drives Tejveer, an alumnus of City University, London, is his billionaire father, Jaswant Rai, who is also the chairman of Rai Group Limited.
While the younger Rai, who is the managing director of West Kenya Sugar Company, cuts the image of a calm boss who prefers to operate from behind the scenes, the many accusations of cane poaching that the family business faces in Western Kenya betray dents in the image of the perceived shrewd operator.