Operations at Mumias Sugar Company ground to a halt after farmers and local leaders stormed the factory to protest the takeover of its ethanol distillery and co-generation (co-gen) plants by businessman Jaswant Singh Rai, reported The Standard.
The unrest followed a decision by Kenya Commercial Bank (KCB), which placed the miller under receivership, to grant Jaswant control of the two plants. Jaswant, who owns West Kenya Sugar Company, has been embroiled in a longstanding dispute with his brother, Sarbi Singh Rai, who currently manages Mumias Sugar under a lease agreement.
A letter signed by Patrick Mutuli, the legal officer for the KCB-appointed receiver manager, stated that West Kenya Sugar was reviving the ethanol and co-gen plants in line with a directive issued by President William Ruto on January 20, 2025. “On the instructions of the receiver manager, this is to request that you allow them unhindered access to the two plants mentioned above, to enable them to complete their assignment,” the letter read.
However, the move has been met with fierce opposition from local farmers and leaders, who have vowed to stage daily demonstrations until Jaswant relinquishes control of the plants and allows Sarbi to take over. A co-gen plant produces electricity as part of the factory’s operations.
Mayoni Member of County Assembly (MCA) Fredrick Watitwa alleged that Jaswant had acquired the plants through questionable deals involving Victoria Bank and Vartox Resources. “We are aware that Jaswant Rai, through Victoria Bank and Vartox Resources, bought the two plants in deals that are suspicious, and we call upon the DCI to investigate the matter,” he said.
Watitwa urged President Ruto to intervene, warning that Jaswant’s involvement could derail efforts to revive the struggling miller. “Jaswant has been the fiercest opponent of Mumias Sugar’s revival. He was behind 17 court cases challenging its leasing and revival, and now he wants to operate two key plants within the factory,” he stated.
Other leaders and farmers echoed similar concerns, questioning how someone who had allegedly worked against the factory’s revival could now be entrusted with its operations. “If he refuses to leave, we will mobilize the entire region to demonstrate daily and halt the supply of sugarcane to the factory,” said local leader Osanga.
Farmers, led by Alice Kageha, appealed to President Ruto to take action. “Our President has shown a commitment to reviving the sugar sector by issuing Sh150 million in bonuses to farmers. However, we are struggling to understand how someone who has opposed the factory’s revival can now be allowed to run key operations inside it,” she said.
Kakamega Governor Fernandes Barasa also voiced his opposition, stating that the next step in Mumias Sugar’s recovery was to operationalize the ethanol and co-gen plants under proper management.
As tensions continue to rise, all eyes are now on the government to see how it will address the standoff.