Kenya Insights

Tag: Devki Group

  • Devki Group Allegedly Imported Fake Fertilizer, Repackaged Russian Donation, Claims Gachagua

    Devki Group Allegedly Imported Fake Fertilizer, Repackaged Russian Donation, Claims Gachagua

    In a series of explosive allegations, former Deputy President Rigathi Gachagua and former Attorney General Justin Muturi have accused President William Ruto and his close associates of engaging in shady foreign dealings that undermine Kenya’s national interests for personal gain. Among the claims are the importation of counterfeit fertilizer and the repackaging of donated Russian and Algerian fertilizer, which was allegedly sold to Kenyan farmers at a profit.

    Gachagua, in a revealing interview with KTN on Monday evening, labeled Ruto the “high priest of corruption” and “chief procurement officer,” accusing him of coercing state officials into facilitating corrupt schemes. He alleged that 40,000 metric tonnes of fertilizer donated by Russia and 30,000 metric tonnes from Algeria—intended to be distributed to farmers for free—were instead handed over to Maisha Minerals Limited, a subsidiary of Devki Group owned by Ruto’s business associate, Narendra Raval. According to Gachagua, the fertilizer was blended with fake products and sold to the government at Sh4,000 per unit.

    “Maisha Minerals repackaged the donated fertilizer as Mavuno Fertilizer and supplied it through Mappings Company,” Gachagua claimed. “A report by the Kenya Bureau of Standards (KEBS) exposing this was shelved because it implicated Ruto. I have documents to back these allegations.”

    Meanwhile, Muturi alleged that he thwarted a Sh129 billion tree-planting deal with Russian oligarchs, which he claims Ruto pressured him to approve. He further stated that during Ruto’s visit to India—where the controversial Adani business dealings were initiated—the President traveled on a private jet provided by Devki Group chairman Narendra Raval. Muturi said Ruto’s aides briefed him on the Russian fertilizer deal during this trip.

    Gachagua’s Broader Accusations

    Gachagua revisited his fallout with Ruto, claiming tensions emerged a month after they took office when the President reneged on agreements regarding government appointments. “I pleaded with him to retain principal secretaries from Mt Kenya and Rift Valley, but he retained five from his region and only one from mine. That’s when I realized he is deceptive and tribal,” Gachagua said. He recounted how Ruto insulted him when confronted, asserting his authority as the appointing power.

    The former deputy president also accused Ruto of tolerating corruption among his inner circle. He claimed Ruto’s personal assistant, Farouk Kibet, demanded money from individuals seeking meetings with him, a practice Gachagua resisted. “The President told me he had no problem with Farouk making a little money, but I refused to be controlled by a junior officer,” he said.

    Gachagua further alleged that Dennis Itumbi, Ruto’s chief propagandist, sought to dictate his public messaging, a move he rejected. “Itumbi has a private arrangement with the President. He’d interrupt my meetings with Ruto, claiming time was up—a scheme to harass me,” he added.

    On corruption, Gachagua cited an incident in Naivasha where Ruto allegedly pressured Muturi to approve the purchase of 11,000 acres of Kedong Ranch for an industrial park using the Settlement Trustee Fund. “Muturi refused, saying the fund was for settling people, not commercial projects. Ruto called him indisciplined and asked me to warn him, but I supported Muturi,” Gachagua said.

    Foreign Ties and Regional Politics

    Gachagua also questioned Ruto’s foreign policy decisions, alleging that the President’s recognition of Kosovo as an independent state was driven by commercial interests, including a hotel in Mombasa co-owned with Kosovo’s president. He further claimed Ruto has business ties with the Rapid Support Forces (RSF) in Sudan and has met with M23 rebel officials engaged in conflict with the Democratic Republic of Congo (DRC). “The international community should investigate these relationships,” he urged.

    Commenting on Ruto’s recent tour of the Mt Kenya region, Gachagua dismissed the large crowds as hired attendees. “People were paid to show up. I even participated in mobilizing when I saw money being poured in, but Ruto shouldn’t mistake crowds for support. The region despises betrayal and abandoned him long ago,” he said.

    Ruto Responds

    The allegations come a week after President Ruto addressed his strained relationship with Gachagua in a March 31, 2025, interview. Ruto said tensions arose shortly after taking office due to Gachagua’s frequent clashes with junior officials, including Itumbi, Kibet, and MPs like Ndindi Nyoro and Kimani Ichung’wah. “He dragged the administration into unnecessary confrontations over petty issues,” Ruto said. “I asked him why a Deputy President was quarrelling with bloggers and assistants instead of focusing on delivery.”

    Ruto also criticized Gachagua for failing to promote government projects publicly. “When I served under Uhuru Kenyatta, I was always highlighting development programs. Gachagua never spoke about roads, electricity, or Universal Health Coverage even once in two years,” he said.

    Conflicting Bribery Claims

    Gachagua refuted Ruto’s claim that he demanded a Sh10 billion bribe, pointing to inconsistencies in the administration’s narrative. “Itumbi said I asked for Sh6.5 billion, Ichung’wah claimed Sh4 billion, and now Ruto says Sh10 billion. Even lies need consistency,” he quipped. He argued that if he wanted money, he would have demanded it early in the administration, noting, “It’s a public secret that I funded his campaigns, which is why he chose me as his running mate.”

    As these allegations unfold, they paint a picture of deep divisions within Kenya’s leadership, raising questions about governance, accountability, and the integrity of public resources.

  • National Cement’s ‘Guru’ Narendra Raval Outsmarted In His Push To Gain Clinker Monopoly In Kenya

    National Cement’s ‘Guru’ Narendra Raval Outsmarted In His Push To Gain Clinker Monopoly In Kenya

    ‘Guru’ Narendra Raval made his name from being a business genius and in the steel industry through his company Devki Group. Through his company, Devki Group has been expanding his empire into cement business. In 2015, Mr Raval turned down Mr Aliko Dangote’s offer to acquire part of the Devki empire as a means of accessing the East African market.

    He has since been expanding rapidly and he beat rivals Rai family to the court battle to take over Athi River Mining (ARM) where Guru emerged the winner and gave him teeth into cement and fertilizer business.

    ARM deal made Guru’s National Cement Company (NCC) the second biggest cement maker in Kenya. National Cement has merged with Cemtech in West Pokot which controls huge limestone, clay deposits.

    In the five years to 2020, cement makers spent an annual average of Sh8.3 billion to import 4,439.7 tonnes of clinker from countries such as Saudi Arabia, United Arab Emirates, Egypt and Pakistan.

    This gave a lucrative space for local production of clinker which saw Devki invest heavily in putting up plants across the country with the hopes of gaining a monopoly and being the sole supplier to other cement makers.

    There was a push by some cement manufacturers for Kenya to raise import duty on clinker to 25 per cent from the current 10 per cent, but the clamour has faltered, Devki spearheaded this push in the hopes that it would discourage imports and make manufacturers stream to him for the vital ingredient.

    Competitors have often accused Raval of using his proximity to Statehouse as he’s close to the President to push for unfavorable and selfish deals like raising raising imports duties from 10% to 25% a lobby campaign that he has pushed for long and vigorously in the past few weeks and days.

    The clinker wars that favors Devki have attracted criesfrom close competitors like Savannah Cement who accused Raval of using his proximity to Statehouse to lobby for unfavorable terms to his competitors in bid to lock them out and cement his market dominance which they termed as unhealthy.

    In the last few days there have been coordinated reports on local media about Mr Raval threatening to shutdown his clinker factories, job losses with drops of arm twisting stakeholders to ease stand and increase the import duty for him to gain the supply advantage of clinker to local manufacturers something that didn’t go well with many players.

    ”‪After he bought ARM clinker plant in Kaloleni,it never produced any clinker so u cant talk of him shutting mombasa clinker plant,when it never started in first place. This gentleman killed cement industry by cheap priced cement, and unnecessary bragging that he can produce enough clinker by installing faulty ,second hand clinker plant,sasa imemulemea.‬” One of frustrated engineers in the industry told this writer.

    However, the biggest setback for Mr Raval came from The Kenya Association of Manufacturers (KAM) whom he had hoped to back up his plans.

    The association backed the recommendations that a four-year grace period be considered before any increase of import duty subjected on clinker, the key raw material used in cement production.

    The decision emanates from a report by the National Independent Verification Committee constituted by KAM in order to assess clinker production and consumption capacities in Kenya.

    According to the committee finding, 40% of clinker is imported from around the world while the balance, 60% originates from Egypt at a Zero Tariff Rate.

    “The 4-year grace period will enable the non-integrated companies and those with ongoing expansions to set up and operationalize their clinker facilities to achieve self-sufficiency for clinker production in terms of quantity and quality,” said the committee in the report.

    KAM is also calling for development of a national clinker standard by the Kenya Bureau of Standards (KEBS) to harmonize quality specifications in line with industry requirements and enable enforcement of the same to trade in clinker within the country.

    The standard should also take into account the requirements of special cements and white cement.

    KAM also wants price of locally produced clinker not to be pegged on imports.

    Industry players are also disputing claims that clinker prices are cheaper locally. “Many opt to import because it’s cheaper, if you go to Narendra for instance he’ll want to sell it to you at an exorbitant price, as a feee economy, we have options and until the ground is leveled up, we have to make profits and not at the expense of any pretender and selfish needs.” Says one of key players in the industry to this writer.

    Updated:

    A section of cement manufacturers has reacted sharply to plans by National Cement to lay off workers at its clinker production plant, claiming the firm was playing politics in a bid to get the government to increase import duty on clinker.

    National Cement, a subsidiary of Devki Group, announced on Saturday that it was laying off workers at its factory in Kajiado County, citing poor demand for the essential raw material in cement production.

    Devki Chairman Narendra Raval said the company would send home at least 860 employees working at its Emali-based clinker production plant as demand had failed to pick, with local cement firms preferring to import clinker.

    This would come after 300 employees were laid off after the firm shut its clinker facility in Mombasa.

    Mr Raval has in the past pushed for a hike of import duty on clinker to 25 per cent from the current 10 per cent, saying the country has adequate production capacity.

    However, major competitors Bamburi, Rai, Savannah and Ndovu Cement faulted the firm, saying the clinker issue was being addressed through a “collaborative initiative” that National Cement is part of.

    They said the firm was being “disingenuous” on an industry-wide issue that key stakeholders have engaged on.

    “I do not see why National Cement is playing politics with such a sensitive long-term industry issue that has taken  over a year and which involved the entire cement industry and key stakeholders, including National Cement,” said Savannah Cement Chairman Benson Ndeta in a joint statement on Monday.

    He added that Devki was attempting to strong-arm the government into imposing higher taxes on imports, a move that would “serve one player’s personal interests and expectations”.

    Local cement firms have been fighting over whether to increase import duty on clinker, with National Cement and Mombasa Cement championing a tax increase while the four others have opposed it.

    This led the industry to set up a committee, together with Kenya Association of Manufacturers and the ministries of Industrialisation, Petroleum and Mining and National Treasury, to look into clinker production and consumption.

    The committee, which gave its report mid-September, recommended that the industry be given a four-year window to increase its clinker production capacity, after which the State can increase duty on imports.

  • Business Genius Or Well Dressed Wolf? Shoddy Deals Peels The Mask Off Devki’s ‘Guru’ Narendra Raval

    Business Genius Or Well Dressed Wolf? Shoddy Deals Peels The Mask Off Devki’s ‘Guru’ Narendra Raval

    Until recently when the hell broke lose over the Mumias Sugar Company’s purported revival, Narendra Raval aka Guru as he’s known in his circles for his prowess to cut deals and come up with genius business ideas that have placed him amongst richest people in Kenya, Raval was just a wealthy businessman with a clean slate and a philanthropist who rides in a boda boda to work.

    He hasn’t received much negative press like in the past weeks perhaps a good job from his PR team that ensures his image remains Snow White.

    Until the secret deal that Raval had drawn with Mumias Sugar’s receiver manager Ponangipalli Venkata Ramana Rao was uncovered, all was well as Devki sold the narrative that he was all out to revive a dead company in the tune of Sh5 billion

    So good was his selling points that he said his bid was not to make money, he says, but to revitalise it and give cane farmers livelihoods. Of course that was a plain lie, even world’s biggest philanthropists like Bill Gates don’t ‘help’ entirely without securing their business interests, even philanthropy is business, good for tax evasion by the way from the tax exemptions.

    All was going smooth until the Devki-Mumias deal blew up in parliament with Western politicians reading ulterior motives in the deal.

    It emerged that the leasing process of Mumias Sugar Company Limited was done in secret between Raval, Rao and allegedly in liaison with Kakamega Governor Oparanya.

    Political leaders from the Western region, where the plant is located, made public statements seeking more information while calling for transparency in the take-over process.

    Speaking on behalf of those leaders, Amani National Congress leader Musalia Mudavadi said the struggling sugar firm is a strategic facility in the region and that locals must be fully involved.

    ”KCB Group which placed the company under receivership must be careful how it picks an investor to revive it because the person or firm that comes in will require the goodwill of the leadership, farmers and other stakeholders,” Mudavadi said.

    Lugari MP Ayub Savula has asked the receiver-manager at the troubled Mumias sugar firm P. V Ramana Rao to declare the amount of money he has made from the sale of ethanol.

    “We’re aware that the KCB has negotiated with Narendra Raval who is ready to pump Sh5 billion in the revival of the company.  Rao must make public how much money he has made from ethanol and how much he has repaid KCB,” Savula said.

    When the lid was lift and things started getting nasty, Devki tactfully pulled out of the deal citing protection of their reputation and giving a chance to an open leasing process, this was an afterthought, at first the company was okay going through backdoor to win the lease and on being found with hands in the cookie jar, pulled back to play saint. Devki was aware there wasn’t any public bidding process which is unethical and ridiculously announced withdrawal from a which had not been announced or started, plainly admitting to have attempted playing dirty.

    However, Devki’s problems were from over as renowned activist Okiya Omtatah filed a petition in court to stop the leasing of Mumias Sugar Company as it was marred in secrecy and Rao had manipulated the process in favor of Devki.

    The petition unmasked relationship Devki had with Rao and to a larger extent how Raval seals his some of his deals behind close doors and by using his high connections to get ahead of his competitors in unfair business practices.

    In the petition, Omtatah says it is only when Rao was summoned to the Senate that he disclosed that he had invited eight investors.

    The companies include Catalysis Group of Russia, Sarrai Group of Uganda, Kruman Associates (France), Kibos Sugar and Devki Group, which are both from Kenya, Premier JV (India), Third Gate Capital Management and Godavari Enterprises, India.

    It has also emerged that none of the eight bidders he secretly invited to bid had the capacity to revive the company, leading to fears that a plan was underway to dispose the company off to Rao’s cronies for a song.

    Omtatah says that the fears that the Receiver Manager is conflicted were further reinforced by the fact that, while he was the receiver manager at Kwale Sugar Company he sold scrap metal to the purported lead bidder, Devki Steel Millers Ltd.

    Incidentally, Western leaders had pointed out that given Devki’s past relationships and deals with Rao, the two were scavenging for scrap metals in Mumias which Devki deals in, curiously, the Mumias Sugar takeover by Devki looked like a fine blueprint of Kwale Sugar so the fears of leaders that Devki was coming to Mumias for scrap metals are believable.

    In his petition to oust the questionable receiver manager, Omtatah also claimed that Rao took over the Mumias Company to ostensibly “protect its assets and to the best extent maintain its operations,” yet the company was processing ethanol, from molasses bought mainly from the neighbouring Butali and Busia sugar companies.

    In the court documents, Omtatah says that instead of reviving the company, Rao has mismanaged the ethanol operations and shut them down in March 2021, thus halting all manufacturing operations at the company.

    Also, without proper planning, he ploughed 677 hectares of the Nucleus Estate but failed to plant sugarcane on some 307 HA, letting the effort go to waste.

    He adds that he is aggrieved that close to two years after taking over in 2021, the receiver manager has not published a general statement of affairs on the assets and liabilities of the company as at the time he took over and made known the efforts he has taken to protect the assets of the company and the interests of investors (including farmers), creditors, and other parties.

    He also said Rao has not published periodic reports on what he has done to reduce the KCB Group debt that is responsible for the receivership or published a general statement of affairs on the current state of the assets and liabilities of the company.

    He reiterates that he is aggrieved that the receiver manager has been on site for close to two years with nothing positive to show for it.

    “To make matters worse, he has neglected many assets of Mumias Sugar Company, including the Nucleus Estate and machinery, resulting in the company making huge losses due to the deterioration of the assets,” he adds.

    While answering to the senate over Auditor General Nancy Gathungu‘s report to anomalies flagged in the 2018/19 financial year, an exchange between Governor Oparanya and Senator Malala revealed more about Devki and the relationship Raval has with the Governor.

    The melee started after Malala alleged that Oparanya’s administration has been dishing out county contracts through direct procurement to Devki, the financier who was supposed to take over Mumias Sugar Company.

    The allegations arose from an audit query where Gathungu flagged procurement of fertiliser at a contract sum of Sh305.01 million by the county government.

    According to the report, the county procured 135,000 25kg bags of planting fertiliser and 90,000 bags of top dressing fertiliser for maize.

    However, the county did not award the tender to bidder one and bidder two that had been recommended.

    Instead, it awarded the tender to Mavuno brand fertiliser, who was bidder three without notifying the other bidders.

    “Had the supplies been procured from bidders No 1 and No 2 at their respective process, the cost would have amounted to Sh238.50 million instead of Sh305.01 million. Management would as a result, have saved Sh66.51 million.

    In his response, the governor said the law does not require the procurement entity to notify other bidders.

    He added that Mavuno was picked as it had the type of fertiliser the user department needed after consulting the Kenya Agricultural Research Institute on the appropriate type.

    But Malala immediately shot to the floor, saying while the governor’s explanation was scientifically correct, he had issues with the mode of procurement.

    “Your response is scientifically correct, but I have an issue with the contract. Why was the first and second bidders not awarded?” he posed.

    He demanded that the governor and county chief officer in charge of agriculture disclose the proprietor of Mavuno.

    The governor said he did not know the proprietor of the firm a response that triggered the senator to table a document, alleging that the firm is owned by Devki.

    “The owner of Mavuno is Devki.  Is there any relationship between the governor and Devki. Three year ago you gave Devki a go ahead to lease Mumias,” he claimed.

    The governor insisted he had no relationship with Devki.

    “I don’t know him. You think you are the only person who can speak,” a visibility agitated governor hit back as the situation escalated.

    Previously, Sugarcane farmers had flagged efforts by the Governor to rig the deal for Devki Group.

    The farmers from Western region have warned Kakamega Governor Wycliffe Oparanya against meddling in the leasing process of Mumias Sugar Company.

    The farmers accused the governor of misadvising Mumias Sugar Receiver Manager Pongangipalli Venkata Ramana Rao to disregard the directives of the Senate.

    The Senate Committee on Agriculture recommended that the process of leasing Mumias Sugar Company should start afresh and that it must be done in a fair and transparent manner.

    However, Governor Oparanya, over the weekend appeared to discredit senators saying that they have no powers to direct Mr Rao how to carry out the process.

    “We are privy to the information that Governor Oparanya is asking Mumias Sugar Receiver Manager to ignore the recommendations of the Senate and bring in Devki Group Limited, we shall resist,” said the farmers in protest of Oparanya’s bias to Devki.

    Curiously, Oparanya has been having an interest in Mumias takeover and warned severally against it, it therefore doesn’t take brainer to how Devki was secretly pulled in, pitted the lead bidder and by connections pushed for the seal by the governor.

    Dominance

    There has been proxy wars as it could emerge that Rai’s family made a bid for Mumias through their Ugandan subsidiary Sarrai Group, which among other installations, owns a sugar and plywood business in Uganda and Malawi. Rai family are the dominating sugar industry shareholders in the country and one of the bidders for Mumias takeover, were to meet their longtime foe in the fight for sugar dominance.

    A rivalry has existed between the Rai and Raval with the two wealthy businessmen trying to outdo each other, Rai has made attempts to penetrate the cement market but Raval with his methods has ensured it hasn’t happened like in the case of ARM takeover that he kicked Rai out. By attempting the Mumias takeover, Raval was taking the war to Rai’s doorstep.

    Rai is the sugar magnate controlling 44 per cent market share through his three millers – West Kenya, Sukari Industries, and Olepito Sugar.

    Raval, popularly known as Guru is the king of steel through his company Devki Group has been expanding his empire into cement business.

    In 2015, a Nigerian magnate approached Guru, with a proposal to acquire part of the Devki empire as a means of accessing the East African market. Mr Raval turned down Mr Dangote’s offer.

    He has since been expanding rapidly and he beat Rai to the court battle to take over Athi River Mining (ARM) where Guru emerged the winner and gave him teeth into cement and fertilizer business.

    ARM deal made Guru’s National Cement Company (NCC) which manufactures the Simba Cement brand, the second biggest cement maker in the country.

    National Cement expansion saw it merge with Cemtech in West Pokot with significant limestone and clay deposits that are key components in its production.

    Raval is also erecting a second 1.8 million metric tonnes per annum clinker line in Kajiado where construction started this year.

    He is also setting up another 0.75 million metric tonnes cement plant to be built in Kilifi County while the 0.88 million metric tonnes is still underway and was to be commissioned in mid-2020.

    Unhealthy Competition

    The king of Kenyan cement and boss of Devki Group, Narendra Raval, has been aiming to become the sole supplier of raw materials to his competitors. Raval has been lobbying the government to raise the import duties on clinker from 10% to 25%.

    The clinker wars that favors Devki attracted cries from close competitors like Savannah Cement who accused Raval of using his proximity to Statehouse to lobby for unfavorable terms to his competitors in bid to lock them out and cement his market dominance which they termed as unhealthy.

    Raval has had cordial relationships with the Kenyatta government as well as the previous Kibaki government. There have been claims that he uses his proximity to power to cut deal, claims that he naturally dismisses.

    On March 9, 2018, President Uhuru Kenyatta handpicked Raval to replace Shem Oyoo Wandigaas the Egerton University chancellor.

    Like the late Chris Kirubi, Raval has also been a power broker an instance of how played a big role in ensuring that Kenya’s third President Mwai Kibaki appointed Kalonzo Musyoka as his vice president after the disputed 2007 polls, as Kalonzo confirmed in his 2016 memoir, Against All Odds.

    Raval’s philanthropy has been felt more so during the COVID-19 pandemic where he donated oxygen to all government and county hospitals in the country. He was also appointed by Uhuru to the Covid-19 Emergency Response Fund Board. Its primary mandate was to mobilise resources for an emergency response towards containing the spread, effects and impact of the COVID-19 pandemic. Other objectives of the fund included  supporting the government’s efforts in the supply of medical facilities and equipment and support for vulnerable communities with their immediate needs, including food.

    The fund would later be rocked with misappropriation of funds as flagged by the Auditor General.

    While the world is all praises for Raval, he has equally been criticized by workers rights groups over welfare of workers in Devki steel factories. Allegations include, Workers being hired and fired on temporary casual contracts even though those who’ve worked for years. Poor wages and lack of adherence to occupational safety & health requirements a mater that had put the company on the spot after five workers died in an explosion. The company’s labourers claimed the company flouted labour laws saying they worked longer hours and that most of them were not supplied with protecting gear.

    In 2015, he featured in Forbes Magazine, among Africa’s top 50 richest people, with his fortune estimated at Ksh40 billion then.

    Companies under his solely owned Devki Group conglomerate include Devki Steel Mills Limited, National Cement Company Limited Uganda, Maisha Mabati Mills Limited and Northwood Aviation Limited.

  • Omtatah Wants Mumias Sugar Revival Frozen

    Omtatah Wants Mumias Sugar Revival Frozen

    An activist has moved to court seeking temporarily suspend a directive by Senate to Mumias Sugar Company receiver manager Ponangipalli Venkata Ramana Rao from inviting bids from investors to salvage the troubled miller.

    “The matter is extremely urgent since the on June 9, 2021 or thereabouts, the Senate’s Agriculture Committee looking into the affairs of troubled Mumias Sugar Company (the Company) directed the 1st Respondent, the Receiver Manager, to within 14 days re-advertise the bid to salvage the troubled Mumias Sugar Company,” Okiya Omtatah said in a petition.

    According to Omtatah, the Senate got involved after it emerged that the Receiver Manager was engaged in a secretive bidding process to purportedly identify a strategic investor for the Company.

    In the petition, Omtatah says it is only when Rao was summoned to the Senate that he disclosed that he had invited eight investors.

    The companies include Catalysis Group of Russia, Sarrai Group of Uganda, Kruman Associates (France), Kibos Sugar and Devki Group, which are both from Kenya, Premier JV (India), Third Gate Capital Management and Godavari Enterprises, India.

    It has also emerged that none of the eight bidders he secretly invited to bid had the capacity to revive the company, leading to fears that a plan was underway to dispose the company off to Rao’s cronies for a song.

    Omtatah says that the fears that the Receiver Manager is conflicted were further reinforced by the fact that, while he was the receiver manager at Kwale Sugar Company he sold scrap metal to the purported lead bidder, Devki Steel Millers Ltd.

    He also claimed the receiver manager took over the Company to ostensibly “protect its assets and to the best extent maintain its operations,” yet the company was processing ethanol, from molasses bought mainly from the neighbouring Butali and Busia sugar companies.

    In the court documents, Omtatah says that instead of reviving the company, Rao has mismanaged the ethanol operations and shut them down in March 2021, thus halting all manufacturing operations at the company.

    Also, without proper planning, he ploughed 677 hectares of the Nucleus Estate but failed to plant sugarcane on some 307 HA, letting the effort go to waste.

    He adds that he is aggrieved that close to two years after taking over in 2021, the receiver manager has not published a general statement of affairs on the assets and liabilities of the company as at the time he took over and made known the efforts he has taken to protect the assets of the company and the interests of investors (including farmers), creditors, and other parties.

    He also said Rao has not published periodic reports on what he has done to reduce the KCB Group debt that is responsible for the receivership or published a general statement of affairs on the current state of the assets and liabilities of the company.

    He reiterates that he is aggrieved that the receiver manager has been on site for close to two years with nothing positive to show for it.

    “To make matters worse, he has neglected many assets of Mumias Sugar Company, including the Nucleus Estate and machinery, resulting in the company making huge losses due to the deterioration of the assets,” he adds

    Omtatah also points out that the neglected assets, especially the nucleus estate which has been left to grow wild, pose a danger to the public.

    “Whereas when a company is put in receivership certain rights of its owners are extinguished, and the appointed receiver takes control of the asset and works solely in the interests of the secured creditor, and the receiver may either liquidate the business or revive it, the case of Mumias different.

    “The company was set up to implement the Mumias Sugar Scheme to benefit sugarcane farmers in western Kenya and its environs and the general public,” he adds.

    He adds that because of the Government’s 20 percent shareholding in the company, and the fact that the company sits on land being acquired for the public purpose of setting up a sugar factory to serve sugarcane farmers and to support the economy of the wider western Kenya region, a public interest arises in how the receiver manager is running the company given the fact that the ‘public’ land is idle, and is not being put to the purpose for which it was ‘acquired’.

    “It is clear that the receiver manager who has been on site for some two years now has failed in his mission to protect the Company’s assets and to the best extent maintain its operations. Instead, he has completely shut down the company and is en route to nailing the last nail in the coffin of Mumias Sugar Scheme,” he said.

  • Lobby Group Accuse Mumias Manager Of Colluding With Tycoon Raval To Shortchange Farmers In Takeover

    Lobby Group Accuse Mumias Manager Of Colluding With Tycoon Raval To Shortchange Farmers In Takeover

    Kenyan Association of Sugar and Allied Products (KASAP) reads mischief in plans by Mumias Sugar Company Receiver Manager to lease the troubled miller.

    According to KASAP National Secretary Peter Ondima the bidding process to find a suitable lessee ought to have been advertised and evaluation of all bidders done in an open and transparent manner.

    Ondima accuses the Receiver Manager PVR Rao of keeping the process under thick veil until concerns were raised by among others, sugarcane farmers, local politicians and other stakeholders.

    “It was very telling that while seven bidders chose to remain silent and allow a due process to follow, Mr Raval from nowhere emerged and started to announce how he had amassed wealth and wanted to direct Kshs. 5billion towards the revival of Mumias Sugar,” said Odima.

    Earlier this month, Devki Group chairman Dr Narendra Raval announced the withdrawal from the deal saying it lacked the input of key stakeholders.

    Devki Group is among eight firms which had placed bids to lease the ailing millers according to Mr Rao’s revelations before the Senate, other being Catalysis Group, Premiere JV, Sarrai Group, Kibos Sugar, Third Gate Capital Management, Godavari Enterprises, and Kruman Associates.

    ”We do not know whether Rao and Raval were testing waters to gauge reactions from Kenyans or they were serious but that where anger against Devki started,” added Ondima.

    Last week, the Senate’s Standing Committee of Agriculture had directed that the bidding process to find Mumias Sugar lessee start afresh and everything done transparently.

    Dr Raval however rebuffed claims that the bidding process was flawed, saying, ““The due process was followed and we were shortlisted and agreed in everything but at the time of starting Mumias, politics started.”

    A farmer Boniface Manda said,” had Dr Raval remained silent, nobody would have known that irregularities had been committed behind the scenes that culminated in secret signing of lease agreement without the knowledge of the other seven bidders.”

    KASAP wondered how Devki Group, a firm known for manufacturing steel and cement won the bid to lease Mumias Sugar at the expense of some bidders who are already in the sugar milling business.

    “Despite Raval’s remarks that he had sealed the deal to take over Mumias, Rao came out and said that nobody had already won the tender and the process of searching for one was not yet concluded with,” said Odima.

    Meanwhile sugarcane farmers from Mumias have warned Kakamega Governor Wycliffe Oparanya against forcing Devki lease.