Home BUSINESS NEWS Billionaire Narendra Raval Bids Sh5 Billion to Revive Mumias Sugar

Billionaire Narendra Raval Bids Sh5 Billion to Revive Mumias Sugar

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Billionaire Narendra Raval Bids Sh5 Billion to Revive Mumias Sugar

Billionaire Narendra Raval has revealed plans to invest Sh5 billion in reviving Mumias Sugar Company.

The tycoon plans to spend Sh4 billion on upgrading the rundown milling plant while Sh1 billion will be used to woo farmers to return to sugarcane production. 

Mumias was Kenya’s leading sugar producer at more than 250,000 tonnes annually before it halted operations three years ago. Its closure was as a result of poor management, heavy debts, and years of mounting losses. 

In 2019, Kenya Commercial Bank (KCB) Group placed the miller under receivership to protect its assets while trading of its shares at the Nairobi Stock Exchange (NSE) was suspended.

Narendra, who is worth about Sh65 billion, told Business Daily that he looks to run the sugar company for between 10 and 15 years if he secures the leasing deal.

“I will pay the receiver-manager the monthly dues and meet other expenses of running the plant and paying farmers for cane delivery. It is up to the receiver-manager to decide on how to divide the money that I will pay them, in terms of paying the creditors,” he said.

Mumias owes French development agency Proparco Sh1.84 billion, Ecobank Sh1.77 billion, and Sh2.83 billion to the National Treasury. Other banks including KCB Group, NCBA, and Stanbic Bank are owed more than Sh3 billion.

Narendra is the founder and owner of Devki Group of Companies, majoring in steel and cement production.

9 COMMENTS

  1. How many employees was this…
    How many employees was this sugar Mill employing before Kidero ran it to the ground?MISMSNSGEMENT.If Narendra can revive it, let him do it.I the creditors will working with him.Another industry that need revival is the Webuye paper mill.
    Even if we can get cheaper products somewhere, we have to think of employments.No point of having cheaper stuff with no money to buy them. Creating employment is the engine with runs the economy.

  2. WHAT’S THE CATCH?
    ANOTHER…

    WHAT’S THE CATCH?
    ANOTHER COW TO MILK?
    JAMENI, UJINGA TUTAWACHA LINI?

  3. WHAT’S THE CATCH?
    ANOTHER…

    WHAT’S THE CATCH?
    ANOTHER COW TO MILK?
    JAMENI, UJINGA TUTAWACHA LINI?

  4. …and who pays the…
    …and who pays the stakeholders who had invested…like in the Mumias shares??? The Receiver never pays dividends… Lucky damn banks…they get paid…even with making millions in return. Kenya is a country that misuses it’s citizens…the citizen is just a beast of burden….malipo ni mateke not!

  5. …and who pays the…
    …and who pays the stakeholders who had invested…like in the Mumias shares??? The Receiver never pays dividends… Lucky damn banks…they get paid…even with making millions in return. Kenya is a country that misuses it’s citizens…the citizen is just a beast of burden….malipo ni mateke not!
    Most of these loans went into a few individuals pockets. Sad… and may those involved pay it back to the penny with their own sweat and blood.

  6. …and who pays the…
    …and who pays the stakeholders who had invested…like in the Mumias shares??? The Receiver never pays dividends… Lucky damn banks…they get paid…even with making millions in return. Kenya is a country that misuses it’s citizens…the citizen is just a beast of burden….malipo ni mateke not!
    Most of these loans went into a few individuals pockets. Sad… and may those involved pay it back to the penny with their own sweat and blood.

  7. Am so happy to read this. I…
    Am so happy to read this. I worked with the Sugar Companies when they were managed by Bookers Agrictueal Services (UK).(Muhias 1 n 2, Mûhoroni, Chemelil, Trans Nzoia) So, In the past, I saw first hand what good management can do. Mumias has great potential for farmers and the sugar growers at large. It is the right thing to do. Best Wishes for a successful come back.

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