Tuesday, May 25, 2021 – Devki Group Chairman, billionaire Narendra Raval, has come to the rescue of struggling Mumias Sugar Company after staking a multi-billion claim in its revival.
Raval plans to inject Ksh5 billion into the sugar miller that ceased operations in September 2019 over unpaid loans.
In the leasing plan, Ksh4 billion will be used to revamp the run-down processing plant while Ksh1 billion will be used as an incentive to lure farmers back to sugarcane farming.
He is among the eight individuals who have been shortlisted over the taking over of Mumias through leasing.
Raval has indicated that he was keen on creating employment in the region that has suffered due to the collapse of their lifeline.
“My main objective will be to revive the factory and give back the livelihood to over a million people who relied on the firm,” stated the billionaire.
The firm was put under receivership by Kenya Commercial Bank (KCB) in September 2019 to protect its assets and maintain operations.
The company that secures the leasing contract will run the firm and pay KCB a sum total of Ksh545 million over a period of 15 years.
Mumia Sugar has been plagued by a series of challenges ranging from mismanagement, sugarcane shortages and cash flow constraints.
Devki Group is the largest manufacturer of steel products in East and Central Africa.
In 2015, Raval was listed as among Africa’s richest with an estimated value of Ksh65 billion.
Raval is known for his philanthropy and supports a string of orphanages in the country.
E! News Blog
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