Mumias Sugar Revival: A week after the proposed lease of Mumias Sugar to steel tycoon Narendra Raval collapsed, reports are emerging that the opposition to the deal which has mainly come from politicians is due to lack of kickbacks.
A report that appeared in The Star newspaper on Tuesday says that politicians from the Western sugar belt are plotting to demand for as much as Sh. 100 million to offer their support for the miller’s revival. Failure by any prospective investor to pay these kickbacks will allegedly see political and farmer support withdrawn.
“Some leaders are also said to be planning to demand kickbacks in exchange for their support. These leaders intend to demand as much as Sh. 100 million as kickbacks from the investor,” the brief report in The Star said.
Last week, Raval withdrew his bid to take over and revive Mumias Sugar. Raval, who had stated that he would invest Sh. 5 billion into the moribund sugar company said that his bid had been castigated by politicians from Western Kenya.
From village teacher earning Sh. 5,000 to one of Kenya’s best paid CEOs
He added that his decision was made to protect his business name and reputation from being muddied in politics.
“I have withdrawn my interest to invest in Mumias through a leasing plan because of the political interests that have emerged. I have officially informed KCB of my withdrawal,” Raval told a local daily.
Raval had “unveiled a multi-billion shilling Mumias Sugar revival package that will see Sh. 4 billion used to upgrade the rundown production plant and Sh. 1 billion sweetener for farmers to return to cane production.”
