Uganda-based Sarrai Group has bagged the 20-year contract for running ailing Mumias Sugar Company, said Pongongipalli Venkata Ramana Rao, receiver-manager of the company.
According to the media report, the Sarrai Group belongs to the billionaire Rai family and has several business ventures, including the sugar sector and plywood business in Uganda and Malawi.
The lease agreement is in the interest of all stakeholders and is executed as per the recent court order dated November 19, 2021, said the manager. Several businessmen had approached for the revival of Mumias.
The company was once Kenya’s leading producer of sugar-producing 250,000 tonnes a year but ran into losses due to poor management and heavy debts over the several years.