Billionaire entrepreneur Narendra Raval has bid Ksh5 billion to restore Mumias Sugar Company to its former glory. The once Africa's top sugar producer halted operations about three years ago.
The billionaire has tabled Ksh4 billion that will be used to restore operations a the ageing sugar plant and Ksh1 billion which will be used to pay sugarcane farmers to woo them back into the sector.
Raval embarks in the new adventure following successful stints in the steel and cement industries. He is the founder and owner of Devki Group of Companies majoring in steel and cement.
File image of Billionaire Narendra Raval. |Photo| Courtesy|
Poor management and piling debts plunged the sugar company to closure despite a previous record 250,000 tonnes a year production rate.
In September 2019, KCB placed the sugar company under receivership in a bid to protects its assets.
The Nairobi Stock Exchange (NSE) proceeded to suspend trading of MSC shares after operations wound up to a halt.
The leasing bid by Raval will come under scrutiny from the government which owns 20 per cent, and creditors who are owed Ksh11 billion.
The company that will be awarded the leasing deal, will run operations at the Sugar Company while making monthly payments to KCB Bank which is owed Ksh545 million. This could take up to 15 years.
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