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Ruto warns Sarrai group against grabbing Mumias Sugar land

KBC | 18 June 2023

Ruto warns Sarrai group against grabbing Mumias Sugar land
 
President William Ruto has warned private entities against grabbing Mumias Sugar Company land saying it belongs to the people of Kakamega.
 
The High Court last month found Sarrai Group of Uganda and its directors in contempt of court for continuing operations at Mumias Sugar after their controversial lease was canceled last year.
 
Speaking during Sunday service at Christ Church Cathedral, Kakamega County, on June 18, the President said the land cannot be taken by individuals whose aim is to make money from it.
 
Ruto further said the 15000-acre piece of land must be used to benefit the people of Mumias and promised to revive the sugar miller.
 
“I came here in December and said I’ll sort out Mumias Sugar woes. It was not a joke; it is in our manifesto. We will deal with the Mumias Sugar issue once and for all,” the President said.
 
The Head of State also stated that the government spent up to Ksh5 billion to revive the sugar miller in the past, but nothing came out of it.
 
“The government spent up to Ksh5 billion in the past to revive this factory but nothing happened This time around, we must get it right.
 
“I have instructed the ministry concerned and I’ve taken a proposal to the Cabinet to sort out the mess at Mumias Sugar,” Ruto said.
 
The President said the Cabinet will discuss the revival of Mumias Sugar with a view to securing land and making it profitable for both the county and Mumias sugarcane farmers.
 
In December last year, the President threatened to evict Sarrai Group from Mumias saying they had not done anything to turn around the sugar miller.
 
“The government will clear all outstanding debts of the miller and bring in a new investor under an agreement that he will be remitting Ksh100 million monthly to the County Government of Kakamega to improve on standards of education, health, and improve the road network,” he said.
 
President Ruto said many investors were willing to work with his administration to take over the running of Mumias and improve the sugar sector in the country.
 
He regretted that while hundreds of the local youth were starving for job opportunities, Mumias Sugar was in a position to address the same.
 
The Uganda-based Sarrai Group had been awarded a 20-year lease to operate the troubled miller but it was later canceled.
 
In his ruling on April 14, 2022, Justice Mabeya said if the lowest lease amount of Sh5.8 billion by Sarrai Group was accepted, the sugar miller would never bounce back to profit.
 
He said the amount was not even sufficient to settle the debt owed, pay cane farmers, and resume the company’s operations.
 
“The receiver manager cum administrator was seriously conflicted in awarding the lease to Sarrai Group.
 
“The lease should have been awarded to a company with the financial muscle to bring the company back to life.
 
“I do not understand why he disregarded the highest bidders,” Mabeya said in his ruling.
 
Tumaz and Tumaz, a company associated with US-based business tycoon Julius Mwale, emerged as the top bidder with Ksh 27.6 billion for a 20-year lease in the Mumias Sugar bidding process which had attracted a total of eight bidders.
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  • 18 Jun 2023
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