Narendra Raval Mumias Sugar Bid: Steel tycoon Narendra Raval has withdrawn his bid to take over and revive Mumias Sugar.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.
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“I have withdrawn my interest to invest in Mumias through a leasing plan because of the political interests that have emerged.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 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.”
Politicians led by among others ANC leader Musalia Mudavadi and Senator Cleophas Malala had cast doubt on the takeover bid, with others claiming that they were not consulted.
A report that appeared in a local daily said that nominated MP Godfrey Osotsi, “had in a letter to Speaker Justin Muturi demanded an explanation as to whether the government, the County Government of Kakamega, shareholders and the Nairobi Stock Exchange were consulted.”
“Devki Group, which has no experience in the sugar industry, has actively lobbied to win the leasing tender in direct violation of the Public Procurement and Disposal Act,” the MP said in the letter.
Angry leaders oppose tycoon’s Sh. 5 billion Mumias revival bid
Busia Out-growers Company director Lambert Ogochi challenged KCB and receiver manager to come out and make Kenyans understand how they ‘settled’ on Raval. “It is very telling that the purported investor announced himself as the winner. We want KCB to come out together with the receiver manager and tell us how Raval won the tender,” said Ogochi.