Kenya Insights

Tag: Dr Narendra Raval

  • Billionaires Narendra Raval, Jaswant Rai and Tanzanian Rostam Aziz Under Fire as MPs Probe Sh15bn Tax Exemptions Bleeding Economy

    Billionaires Narendra Raval, Jaswant Rai and Tanzanian Rostam Aziz Under Fire as MPs Probe Sh15bn Tax Exemptions Bleeding Economy

    Kenya’s billionaire tycoons Narendra Raval, Jaswant Rai and Tanzanian tycoon Rostam Aziz are at the center of a storm as the National Assembly launches a high-stakes investigation into Sh15 billion in value-added tax (VAT) exemptions granted to their companies and 12 other firms.

    The probe, spearheaded by the Finance and National Planning Committee under Molo MP Kuria Kimani, comes as Kenya grapples with a hemorrhaging economy, struggling to meet its Sh2.8 trillion revenue target for the next financial year.

    Critics argue these exemptions, linked to a legislative error, have enriched a handful of industrial magnates while draining public coffers, exacerbating the nation’s fiscal woes.

    The investigation, prompted by House Speaker Moses Wetang’ula’s suspension of the VAT (Amendment) Bill 2025, aims to scrutinize whether the exemptions—granted to firms with a claimed Sh93.53 billion in investments—were justified.

    With the Kenya Revenue Authority (KRA) facing a revenue shortfall and the country losing over Sh300 billion to tax waivers this year, MPs are questioning whether tycoons like Raval and Rai are profiting at the expense of ordinary Kenyans.

    Tycoons in the Spotlight

    Narendra Raval: The Steel and Cement Kingpin

    Narendra Raval, the 62-year-old chairman of Devki Group, is Kenya’s most prominent industrialist, with a fortune estimated at over $500 million by Forbes in 2015 and a group turnover exceeding $1 billion annually.

    His empire, spanning steel, cement, and energy, dominates the exemption list, with three subsidiaries—Devki Steel Mills, National Cement Company Limited, and CEMTECH Limited—securing Sh4.36 billion in VAT waivers.

    • Devki Steel Mills: Raval’s flagship company, operating a mega project in Kwale County and an iron ore processing plant in Voi, Taita Taveta County, received Sh2.43 billion in exemptions since March 2023 for investments worth Sh15.22 billion.
    • National Cement Company Limited: A Devki subsidiary, it secured Sh1.44 billion for projects in Kaloleni, Kilifi County (Sh516.5 million), and Eldoret, Uasin Gishu County (Sh921.35 million).
    • CEMTECH Limited: Acquired by Devki in 2019, its West Pokot clinker plant received Sh488.74 million for a Sh3.1 billion investment.

    Raval’s close ties to President William Ruto have raised eyebrows. Appointed to lead the National Lottery in 2023 and the Manufacturing Council, Raval is seen as wielding significant influence over policy. Fondly known as ‘Guru’ Raval has lately been dubbed “Kenya’s Gupta,” owing to his grip on government tenders and policies that favors his empire, potentially at the economy’s expense.

    Narendra Raval and President Ruto are seen in State House, Nairobi at a past event.
    Narendra Raval and President Ruto are seen in State House, Nairobi at a past event.

    Critics, warn of “state capture,” citing Raval’s push for higher clinker import duties, which benefited his National Cement while disadvantaging competitors like Rai Cement and Savannah Cement.

    Raval’s companies are also embroiled in a separate Sh4 billion tax dispute with KRA, which revoked earlier VAT exemptions on imported machinery, demanding Sh1.6 billion from Devki Steel Mills and Sh2.4 billion from CEMTECH. Raval has taken the matter to court, arguing the Treasury’s initial undertaking should stand.

    Jaswant Rai: The Sugar and Cement Baron

    Jaswant Rai, the billionaire patriarch of the Rai family, heads the Rai Group, a conglomerate with interests in sugar, cement, and consumer goods.

    His Rai Cement, a key player in Kenya’s cement industry, received Sh1.01 billion in VAT exemptions since October 2024 for investments worth Sh6.34 billion.

    The Rai family, one of East Africa’s wealthiest, also controls Menengai Oil Refineries and Menengai Orchards, and has been linked to bids for Mumias Sugar Company’s lease.

    Rai Cement has clashed with Raval’s National Cement over clinker import duties, arguing that higher levies favor Raval’s local production and threaten smaller players.

    The Rai family’s influence in the sugar sector has also drawn scrutiny, with their West Kenya and Sukari Industries bidding for state-owned millers.

    Other Firms in the Crosshairs

    The probe extends to 11 other companies, including:

    • Taifa Gas Kenya Limited: Linked to Tanzanian tycoon Rostam Aziz, it received Sh827.9 million for Sh5.2 billion in investments.
    • Soit Sugar Company Ltd and Angata Sugar Mills Limited: Private sugar firms with Sh465.1 million and Sh343.31 million in exemptions, respectively, but little public information on ownership.
    • SBC Kenya Limited, De Heus Animal Nutrition Limited, DPL Festive Limited, Nakuru Mining, and Rainham Steel Plant Limited: These firms collectively received Sh7.26 billion, with Nakuru Mining’s Sh6.2 billion exemption for a Sh38.74 billion investment raising particular concern. Ownership details remain opaque.

    A Bleeding Economy and Legislative Blunder

    Parliament Buildings.
    Parliament Buildings.

    The Sh15 billion in exemptions stems from a printing error in the Tax Laws (Amendment) Act, effective December 27, 2024, which allowed VAT waivers for investments over Sh2 billion.

    Its retrospective application to January 2024 has sparked outrage, with MPs like Alego Usonga’s Samuel Atandi warning that such policies undermine revenue collection.

    “We cannot achieve our Sh2.8 trillion target with unexplained exemptions,” Atandi said, noting the Sh300 billion lost to waivers this year.

    The VAT (Amendment) Bill 2025 aims to correct the error, but its suspension reflects MPs’ demand for accountability.

    Leader of Majority Kimani Ichung’wah stressed the need to verify investments, saying, “We must ascertain these are actual investments with real economic impact.”

    However, the probe faces challenges, as Kenya’s history of tax evasion among the super-rich—often hidden through trusts and shell companies—complicates transparency.

    Public Outrage and Economic Stakes

    The exemptions have fueled public discontent, amplified by Kenya’s economic struggles, including a foreign exchange crisis and a downgraded credit rating.

    Posts on social media reflect growing frustration, with some accusing Raval of leveraging his proximity to Ruto to secure favorable policies.

    The Kenya Association of Manufacturers (KAM) has warned that tax policies favoring tycoons like Raval could lead to capital flight and job losses, as seen in past battles over clinker duties.

    While Raval and Rai have argued that their investments create jobs and drive industrialization, critics contend the benefits are overstated.

    Raval’s Devki Group employs 14,000 and aims for 30,000 by 2030, but competitors in the clinker business would say that policies tilted toward dominant players stifle competition.

    Atandi and others advocate for stricter scrutiny, with Busia Senator Okiya Omtatah’s successful challenge against a Sh385 million exemption for NCBA setting a precedent.

    As the Finance and National Planning Committee conducts site visits and digs into the exemptions, the probe could redefine Kenya’s tax policy.

    Will it expose a system rigged for billionaires, or validate the waivers as essential for growth?

    For now, Raval and Rai, whose empires have shaped Kenya’s industrial landscape, face intense scrutiny as Kenyans demand answers on why the economy is bleeding while tycoons thrive.

  • 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.

  • Muturi Labels Adan Mohamed as Ruto’s Poster Boy for Deals Behind the Scenes in Sh129 Billion Scandal Involving Russians

    Muturi Labels Adan Mohamed as Ruto’s Poster Boy for Deals Behind the Scenes in Sh129 Billion Scandal Involving Russians

    Former Public Service Cabinet Secretary Justin Muturi has accused President William Ruto’s administration of attempting to push through a questionable Sh129 billion ($1 billion) deal with Russian investors.

    In an explosive exposé aired on NTV, the former CS mentioned Ruto’s Economic advisor, Chief of Strategy Execution, Adan Mohamed and industrial giant Narendra Raval of Devki Group in the controversy without directly linking them to the scandal.

    However, he claimed that it was through Adan Mohamed that he became aware of the Adani Airport saga, which he squarely blamed on Ruto.

    Muturi claimed insider knowledge of the deal and alleged Ruto’s direct involvement.

    “I know Ruto is clearly behind it. His economic advisor, Adan Mohamed, invited me to attend COP28 in Dubai in 2023, where I received significant information related to the Adani deal,” he said, explaining how discussions with Ruto’s aides revealed its origins.

    In a scathing criticism of President Ruto, the former Public Service Cabinet Secretary described the Head of State as an irredeemably corrupt figure.

    “When I watch William Ruto sometimes talking to members of the Cabinet and saying, ‘I do not want to see corruption in my government,’ I start wondering, ‘Who is this talking?’”

    “He is absolutely, irredeemably corrupt,” Muturi said.

    The former Attorney General recounted an experience in Dubai, where he was instructed by President Ruto to sign a deal involving Russians.

    However, he said he could not append his signature to the documents, preferring to review them first.

    “I don’t want to give you obvious examples like the Adani deal because I have some background. When his advisor Adan Mohamed invited me to attend COP28 in Dubai in 2023, he gave me a lot of information, which ended up with the Adani deal about the airport. During the same time, some Russian oligarchs had offered to invest USD 1 billion here in Kenya.

    “On the day we were returning from India, after COP28, we flew to India for a state visit. Devki’s Guru informed me that he was chartering a private plane for the president. When I landed in Dubai, Ruto called me, saying, ‘Those people, those Russians, they are there in Dubai; you need to sign those documents.’ But I said I had just landed at the airport; I was in transit and not leaving the airport.

    “He said, ‘But you are there; your staff have already worked on the document, and I need you to review it in the office.’ They (Russians) were purporting to give a grant of USD 1 billion to allegedly grow three billion trees toward the 15 billion trees goal,” Muturi said.

    While Muturi didn’t directly link Ruto’s aides to the alleged ‘corrupt’ schemes, he left little doubt about their roles in the broader ploy.

    Money-Minting Initiatives?

    He added that Ruto’s programs are always influenced by his desire to profit from them.

    “You know, whenever William Ruto comes up with a program, it is for money-making. They (Russians) brought me an MoU that came from the Ministry of Environment, which they pushed through, and I told them that this USD 1 billion can only be by way of a grant, and it cannot come directly to the ministry because, under the PFM Act (The Public Finance Management Act, 1999) in Section 47, it can only go through the National Treasury.

    “They tried to avoid that money going to the National Treasury, and it was money coming from abroad. I was told to sign at the airport, and it was William Ruto calling me directly,” he concluded.

    Muturi was fired as CS, and Geoffrey Ruku, the Member of Parliament for Mbeere North, was nominated in his place.

    Instilling Fear

    Muturi further revealed how Ruto allegedly controls his Cabinet by instilling fear among his ministers, accusing the Head of State of ruling with an iron fist and suppressing dissent.

    Muturi claimed that many Cabinet Secretaries are too afraid to associate with him, speak freely, or even answer his calls, fearing reprisals from the President.

    “Many of them are very timid. They would not want to speak. In fact, some of them don’t want to pick up my calls, even on WhatsApp. They are too scared that they may be found to have spoken to me,” Muturi said.

    “I know others who are telling me, ‘Please get somebody to call on your behalf so we can talk through them.’ What does that tell you? Ruto has instilled such fear in his entire Cabinet that people don’t want to speak.”

    He further revealed that some CSs have urged him to use intermediaries to communicate with them, an indication, he says, of the level of control the President exercises over his ministers.

    Muturi likened President Ruto’s leadership style to that of the late President Daniel Moi, saying he uses both verbal and non-verbal tactics to suppress dissent in the Cabinet.

    Ruto’s Two Personalities

    “With the experience I’ve gained from working with President Ruto, which was my desire after serving as Speaker for 10 years and MP for two terms, I wanted to serve in the national executive. I think Ruto is a person with two personalities. The one who presents himself to the public is a completely different character from the one who sits behind in the office and crafts stuff, and that person is quite a dangerous character,” he claimed.

    “Ruto is a true example of Daniel Moi, no wonder he campaigned against the current Constitution because I think he enjoys a situation where we can go to an imperial presidency. He has disdain for institutions, and that is why he wants to push everything, even in Cabinet,” Muturi said.

    The former CS said that in projects where the President has a personal stake, he dominates discussions and uses fear to ensure everyone aligns with his position.

    “If you want to know where he has an interest, a CS will make a presentation, and then Ruto will take over and begin to explain, to make sure there is no dissent. He will start instilling fear slowly, saying, ‘You know, no coming late…’”

    No Honest Discussions

    Muturi said Cabinet meetings have become difficult spaces for honest discussions, with members forced to read the President’s body language rather than speak their minds.

    “Before Ruto, you just have to know he has expressed this position and he is looking at you, making suggestions…the look he gives you tells you that in this one, you have no options. He is holding the Cabinet hostage,” he said.

    He further noted that ministers now prefer attending committee meetings chaired by Deputy President Kithure Kindiki, where they feel freer to contribute.

    “Today, in Cabinet, he makes it impossible to have a meaningful conversation. In fact, people enjoy going to Cabinet committee meetings chaired by the DP (Rigathi and Kindiki) because they can share their ideas and speak their mind,” he said.

    He further remarked that Ruto is unfit for office.

    “Based on my own careful assessment, I have concluded that President William Ruto is unfit to hold the office of the President of the Republic of Kenya. I say this not out of bitterness, but as a reasoned and objective judgment.”

    Muturi’s remarks offer a rare insider account of the inner workings of Ruto’s Cabinet, raising questions about the state of internal democracy and freedom of expression within the top ranks of government.

  • Concerns Over Devki Group’s Expansion: Job Creation or Exploitation?

    Concerns Over Devki Group’s Expansion: Job Creation or Exploitation?

    On August 4, 2024, Mining Principal Secretary Elijah Mwangi joined Taita Taveta County leaders, led by Governor Andrew Mwadime, to hand over land to the controversial investor Narendra Raval, chair of Devki Group.

    This handover was for the construction of an 11 billion shillings iron-ore processing plant at Ngolia in Voi, Taita-Taveta County.

    Raval pledged to involve local communities and artisanal miners in the project, yet he remains tight-lipped about all the minerals he aims to mine from Taita Taveta.

    This lack of transparency, coupled with his reputation for coercive business practices, has raised significant concerns among Kenyans.

    Devki Group’s Controversial Expansion

    Devki Group’s Controversial Expansion

    Narendra Raval, often referred to as “Guru,” is no stranger to controversy. As the founder and CEO of Devki Group, he has massively invested in Kenya, employing thousands and becoming one of the country’s top taxpayers.

    Despite these contributions, his methods and the true benefits of his investments are under scrutiny.

    The announcement of the iron-ore plant in Taita Taveta is just one of several projects Raval is pursuing across Kenya, including value addition for the gold value chain in Kakamega, granite in Vihiga, and fluorspar in Elgeyo Marakwet.

    However, questions abound regarding the ultimate vision of these projects and whether they genuinely benefit Kenyans.

    Lack of Transparency and Community Involvement

    One of the primary concerns is the opacity surrounding the minerals to be extracted from Taita Taveta. While the focus has been on iron ore, locals and environmentalists suspect that rare minerals are also at stake.

    Kenyans are demanding full disclosure and feasibility studies to understand the environmental and economic impacts.

    Furthermore, they question why the government has chosen to hand over a title deed to a foreign investor without thorough public consultation or consideration of nationalizing the extraction and processing of these resources, similar to the oil models in Arab countries.

    Environmental and Economic Impacts

    The environmental impact of mining in Taita Taveta is another critical issue. Local communities fear that extensive mining operations will lead to environmental degradation, affecting their livelihoods and the ecosystem.

    They are demanding comprehensive environmental impact assessments (EIAs) be made public, ensuring that the community’s well-being is prioritized over corporate profits.

    Job Creation: A Hollow Promise?

    Raval’s promise to involve local communities in his projects has been met with skepticism. While the creation of jobs is a positive aspect, the quality and pay of these jobs are in question.

    Critics argue that Raval’s ventures often result in low-paying, precarious employment rather than sustainable, well-paying jobs.

    This concern is echoed in other regions where Devki Group operates, with locals feeling exploited rather than uplifted.

    Devki Group’s Influence and Political Ties

    Raval’s influence extends beyond the business realm into the political sphere. His close ties with President William Ruto have raised eyebrows, especially given his controversial suggestions for constitutional amendments to extend Ruto’s term.

    Such proposals not only undermine Kenya’s democratic principles but also highlight the dangerous intersection of business and politics.

    Unfair Competition and Monopolistic Practices

    Raval’s dominance in the cement and steel industries has also drawn criticism. Kenya’s cement manufacturers have protested against what they see as a skewed tax regime favoring Devki Group.

    The Finance Act 2023, which includes a 37.5% tax on imported clinker and steel, is perceived as a move to grant National Cement, a Devki subsidiary, a monopoly.

    This has led to the collapse of other local firms and a significant increase in cement prices, further straining the economy.

    Devki Group’s Expansion, Community Resistance and Legal Battles

    Devki Group’s expansion has not been without resistance. In Kitui County, plans to set up a cement factory have been stalled due to protests over unpaid compensation.

    Residents of Ngaaie location, rich in limestone deposits, have threatened legal action to ensure they are compensated fairly for their land and developments.

    This standoff underscores the broader issues of corporate accountability and community rights.

    Call for National Mining Company

    Amidst these concerns, there is a growing call for the establishment of a national mining company. This entity would oversee the extraction and sale of minerals on behalf of the country, ensuring that profits benefit the nation as a whole rather than a select few.

    Such a model would also enhance transparency and accountability, providing Kenyans with the information and assurance they need.

    Conclusion: A Call for Transparency and Accountability

    The handover of land to Narendra Raval and the subsequent establishment of the iron-ore processing plant in Taita Taveta have sparked a national conversation about the true costs and benefits of such investments.

    While job creation and economic growth are essential, they must not come at the expense of transparency, environmental sustainability, and fair treatment of local communities.

    Kenyans are right to demand answers and accountability, ensuring that their natural resources are managed in a way that benefits all, not just a powerful few.

    As the country moves forward, it is crucial to balance industrial growth with democratic principles and social justice, safeguarding Kenya’s heritage and future.

  • Competition Authority Warns State House Against Adopting Narendra Raval’s Proposal Of Hiking Levy On Clinker

    Competition Authority Warns State House Against Adopting Narendra Raval’s Proposal Of Hiking Levy On Clinker

    ‘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.

    Raval has been accused oftentimes by a section of cement manufacturers claiming the firm was playing politics in a bid to get the government to increase import duty on clinker this became apparent when National Cement threatened to lay off workers at its clinker production plant in an arm twisting and blackmail tactic to push state into adopting his bid.

    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.

    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.

    The Competition Authority of Kenya (CAK) is warning the government against implementing a proposal by billionaire industrialist Narendra Raval to raise the import duty on clinker, a raw material used in cement production, from 10 percent to 25 percent.

    Mr Raval whose Devki Group owns four cement firms has been lobbying the government to raise the taxes, arguing that the country now has enough capacity to meet its clinker needs.

    But the competition watchdog says the proposal is a self-serving move on the part of Devki which has a near-monopoly on the means of manufacturing clinker, adding that it risks shutting down rival plants and raising cement prices

    In an advisory opinion to State House, the Treasury and other government departments, the regulator noted that imported clinker is cheaper and that the window to import or produce it locally should be maintained to ensure healthy competition.

    The State has been considering increasing the import duty, drawing protests from Raval’s rivals — Bamburi Cement, Savannah and Rai. The watchdog says expensive imported clinker will make it easier for Raval to control cement prices through influencing rivals’ production costs, killing them by controlling supply of the critical raw material.

    “Increasing the current import duties will therefore distort the market, entrench National Cement’s position as a cement manufacturer and a clinker supplier and placing it at a position to foreclosing competitors and barring entry into the market,” the CAK wrote in the letter.

    “Further, increasing duty will make it more costly [sic] for firms to import clinker yet sourcing from local manufacturers is even more expensive.The proposal seems not to be attending to an existing market/consumer problem but a private/shareholder investment strategy.

    The billionaire, 59, who made his initial fortune in the steel industry, has spent billions of shillings in recent years to build a cement empire. Devki has annual revenues of more than $800 million (Sh88 billion), producing steel products, roofing sheets and cement among other items.

    The conglomerate now owns National Cement, Simba Cement, ARM Cement and Cemtech, fuelling the expansion through its own resources and loans from banks and the International Finance Corporation (IFC).

    The CAK’s analysis shows that the Devki entities control a combined 84 percent of limestone mining allocation, giving them excess power in the extraction of the mineral which is a key component in producing clinker. Limestone is mixed with clay soil and iron ore to make clinker which is then ground with gypsum to make cement.

    Mr Raval, one of the richest and well-connected businessmen in the country, has argued that raising taxes on foreign clinker or banning imports altogether is now possible because of the ability to produce the commodity locally.

    He says the move will help create jobs for Kenyans and improve the country’s balance of payments. Mr Raval recently announced that his company, National Cement, will cut more than 800 jobs because of weak demand for clinker as a result of the government’s failure to curb imports of the commodity.

    Rivals protested, accusing him of using his position as one of the country’s biggest employers to arm-twist the government into restricting clinker imports

    It marked a rare fallout among members of the Kenya Association of Manufacturers (KAM) who traditionally take a position to lobby policymakers. The chief executives of Savannah Cement, Bamburi Cement, Rai Cement and Karsan Ramji & Sons Limited issued a statement to condemn what they termed a disingenuous “public outcry” by National Cement.

    They said the company had gone against the all-inclusive National Independent Clinker Verification Committee whose key recommendation is that players should be given a grace period of four years before any increase of import duty

    Mr Raval’s moves are reminiscent of Nigeria’s protectionist policies starting in 1999 that turbocharged the business empire of Aliko Dangote who went on to become the richest man in Africa with a fortune estimated at $12.8 billion (Sh1.4 trillion).

    In an interview with the Financial Times, Mr Dangote said Nigeria’s former president Olusegun Obasanjo summoned him and asked why the country could not produce cement.

    The businessman told Mr Obasanjo that it was more profitable to trade than to produce, adding that restricting imports would incentivise manufacturing. The President agreed and the protectionist policies started, helping the businessman to build the largest commodities empire on the continent ranging from cement, petrochemicals and sugar

    Mr Dangote said he helped fund Mr Obasanjo’s electoral campaigns, demonstrating how top entrepreneurs are uniquely positioned to shape policy to their benefit. The CAK says Devki’s proposal risks reversing the steady decline in cement prices over the years, an outcome of brutal price wars fuelled by expansion of entrenched and new players despite a growing glut in the local and regional markets.

    The regulator says real prices declined by more than 20 percent in Kenya between 2014 and 2018, making the cement sector one of the few industries to cut prices despite rising input costs.

    The regulator said that the current landed cost for a tonne of clinker from the international markets ranges from $100 (Sh11,000) to $110 (Sh12,200), which is cheaper than locally purchased clinker

    The CAK argued that it approved Devki’s expansion in the cement sector through acquisitions due to the fact that its rivals have access to imported clinker. The statement signals that should restriction on clinker imports be imposed, the regulator could push for the breakup of Devki’s cement empire since its control of the commodity will then have a major impact on competition.

    Devki has in the past few years spent more than Sh6 billion to acquire ARM Cement and Cemtech, growing its sales market share and gaining access to more limestone mining rights.

  • 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.

  • 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.