Sarrai Group of India Secures Bid to run Mumias Sugar for 20 years

Sarrai Group, a Ugandan-based conglomerate with diverse and inter-related agro-manufacturing companies across East and Southern Africa, has secured a 20-year lease for assets of Mumias Sugar Company.

It will consequently have the mandate to revive the collapsed sugar milling company, having emerged winners of the bidding process that lasted over 4 months.

According to Mumias Sugar Receiver and Court appointed administrator, P.V.R Rao noted that the lease is in the interest of all stakeholders and in conformity with the recent Court ruling dated 19th November 2021.

He also pointed out that lease did not include the Ethanol and the Cogen plants.

Sarrai Group Chairman, Sarbi Singh Rai outlined the firm’s immediate focus as to investing in the rehabilitation of the machinery back to effective operational status and engaging 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 Uganda based conglomerate of diverse and inter-related agro-manufacturing companies 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. Sarrai Group has no association with entities under Rai Group, including West Kenya Sugar

Sarrai Group employs over 20,000 people across the businesses through companies including Uganda’s Engaano Millers, producers of wheat flour, bread and animal feeds and Ustawi Grain Millers in Mombasa.

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 revival of Mumias Sugar Company Limited (in Receivership) will enhance the standard of living of the local community and catalyse 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,” said P V R Rao.

ALSO READ: 8 firms Submit Bids to run Mumias Sugar Company on a Lease

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