A High Court ruling has intensified a bitter succession dispute among the heirs of the late industrialist Tarlochan Singh Rai, revealing deep fractures within one of East Africa’s most powerful business dynasties.
Justice Alfred Mabeya’s decision to uphold the removal of Iqbal Singh Rai as a signatory to Rai Investments Limited’s bank account has effectively sidelined him from financial control of a key family asset, while cementing his brothers’ grip on the family’s vast business empire.
Brothers Against Brother
The dispute centers around Rai Investments Limited, incorporated nearly five decades ago by the family patriarch Tarlochan Singh Rai, who died in December 2010.
The company’s bank account at Absa Bank Kenya has become the focal point of an intensifying power struggle.
Iqbal Singh Rai filed a lawsuit in July 2023 after discovering he had been removed as a signatory to the company’s account without his knowledge.
He claimed to have learned of his removal only in February 2023 when the bank declined his request for account statements, informing him he was no longer authorized to access the information despite remaining a director and shareholder.
The lawsuit pitted Iqbal against his three brothers—Sarbjit Singh Rai, Jaswant Singh Rai, and Jasbir Singh Rai—who collectively control significant industrial assets across East and Southern Africa.
Silent Removal
Court documents revealed that Iqbal, who had been a director and shareholder since 1978, was removed from the bank mandate through a change made on April 26, 2008.
The modification nominated only Tarlochan Singh Rai (now deceased) and Sarbjit Singh Rai as authorized signatories.
Iqbal maintained that his removal was executed without a formal directors’ meeting or resolution—a claim that formed the cornerstone of his legal challenge.
He further alleged that the bank had allowed payments from the account based on a single signature, contrary to established protocols.
Court Sides with Brothers
Justice Mabeya dismissed Iqbal’s claims, stating that his removal was lawful and in accordance with the company’s resolution.
The judge emphasized that Absa Bank had acted within its obligations by following the instructions provided by Rai Investments Limited.
“A bank’s duty is to follow the mandate given to it by its customer and, in the absence of proof that the mandate was altered unlawfully or without proper authorisation, the court finds no fault on the part of the bank,” Justice Mabeya stated in his ruling.
The court further noted that as a director, Iqbal could not assert an individual claim against the bank for actions taken based on company instructions.
Instead, the judge advised that any challenge regarding the validity of the resolution should have been pursued internally within the company’s framework.
Empire at Stake
The legal battle offers a rare glimpse into the private conflicts of one of East Africa’s most prominent business families, whose combined industrial assets span multiple countries and sectors.
Jaswant Singh Rai, who chairs Rai Group, oversees a diversified portfolio encompassing cement production, edible oils, sugar processing, soap manufacturing, sawmilling, wheat farming, horticulture, and real estate.
Meanwhile, Sarbjit Singh Rai is the driving force behind Sarrai Group, a powerhouse in Uganda’s industrial sector with significant operations in sugar, cement, and wood processing across East and Southern Africa.
The dispute highlights the complexities of succession planning in family-owned conglomerates, where business relationships intertwine with family dynamics.
Industry analysts note that such conflicts are increasingly common as first-generation East African business empires transition to second-generation leadership.
Limited Options
With the court’s dismissal of his claim, Iqbal Singh Rai’s options for regaining financial control appear increasingly limited.
Justice Mabeya’s ruling suggests that his appropriate recourse would be to address the matter within the company’s internal framework rather than through independent legal action against the bank.
The ruling leaves Iqbal effectively isolated from the financial operations of Rai Investments Limited, while his brothers maintain their consolidated control over the company’s banking relationships.
As the dust settles on this legal chapter, observers note that family business disputes of this magnitude rarely conclude with a single court decision.
The ruling may represent just one battle in a longer succession war that could potentially impact the future direction and cohesion of the Rai business empire
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.
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.
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.
The long-standing feud between billionaire brothers Jaswant Singh Rai and Sarbi Singh Rai has taken a dramatic turn, threatening to derail the revival of Kenya’s once-thriving Mumias Sugar Company.
The latest chapter in this bitter sibling rivalry revolves around control of the company’s ethanol distillery and co-generation (co-gen) plants, sparking political tensions and raising concerns over the future of the beleaguered sugar miller.
Last week, milling operations at Mumias Sugar ground to a halt after local leaders and farmers stormed the factory in protest against the takeover of the ethanol and co-gen plants by Jaswant’s West Kenya Sugar Company.
The move came after KCB Bank, which placed Mumias Sugar under receivership, granted Jaswant’s company control of the two plants. This decision has reignited a fierce battle between the Rai brothers, with political leaders in Kakamega County taking sides and threatening to escalate the matter to Parliament.
A Family Feud with Far-Reaching Consequences
The Rai brothers, scions of one of East Africa’s wealthiest families, have been locked in a protracted legal and business rivalry for years. Jaswant, the owner of West Kenya Sugar, and Sarbi, who manages Mumias Sugar, have repeatedly clashed over control of assets and business interests.
The latest dispute stems from KCB’s decision to allow West Kenya Sugar to revive the ethanol and co-gen plants at Mumias, a move that has been met with fierce opposition from Sarbi and his allies.
In a letter dated January 20, 2025, Patrick Mutuli, the legal officer for the receiver manager appointed by KCB, stated that West Kenya Sugar was reviving the plants in compliance with a directive from President William Ruto. “West Kenya Sugar is reviving the distillery and co-gen plants at Mumias Sugar (in receivership) in compliance with the directive issued by the President,” the letter read.
Mutuli further requested unhindered access to the plants to enable West Kenya Sugar to complete its assignment.
However, the decision has been met with resistance from Sarbi’s camp, which argues that the 20-year lease granted to the Uganda-based Sarrai Group for Mumias Sugar’s operations excludes the ethanol and co-gen plants.
Sarrai Group, which has been running the milling operations, offered Sh20 million per month for the plants, while West Kenya Sugar bid Sh150 million.
The disparity in bids has further fueled tensions, with critics accusing Jaswant of using his financial muscle to edge out his brother.
Political Fallout and Calls for Parliamentary Intervention
The political landscape is further complicated, with Kakamega Governor Fernandes Barasa and Senator Bonny Khalwale advocating for Sarrai Group to manage the disputed plants.
Governor Barasa criticized the choice of West Kenya Sugar, arguing, “You can’t remove the person who used to oppose the revival of Mumias and then expect that Rai will revive ethanol and the co-gen.”
Senator Khalwale echoed this sentiment, emphasizing that Sarrai should handle all aspects of Mumias Sugar operations given their existing lease.
Meanwhile, former Sports Cabinet Secretary Rashid Echesa has defended the legal rights of West Kenya Sugar to operate the distillery and co-gen plants, noting that these assets are legally under Rai’s control.
Echesa accused some politicians of being financially supported by Mumias Sugar to castigate President Ruto and oppose the revival of the plants.
“As we speak, whether we like it or not, the distillery and co-gen are property of West Kenya Sugar under Rai, so legally they should run those plants,” he said.
A Stalled Revival and Uncertain Future
The ongoing feud has left Mumias Sugar’s revival in limbo, with operations at the factory stalled and local farmers bearing the brunt of the impasse.
Last week, more than 40 members of the Kakamega County Assembly accused Mumias Sugar’s management of sponsoring demonstrations to oppose the takeover of the plants.
David Ndakwa, the leader of the minority in the assembly, criticized the management for misleading the public about its capacity to operationalize the distillery and co-gen plants.
“It is ironic that even after the management of Mumias Sugar admitted that they rely on bagasse from others to power their boilers, they are misleading people that they can operationalize both distillery and co-gen,” Ndakwa said.
As the Rai brothers’ rivalry continues to play out in the courts and the political arena, the future of Mumias Sugar hangs in the balance.
With Parliament poised to intervene, stakeholders are hoping for a resolution that will allow the once-iconic sugar miller to regain its former glory.
For now, the bitter-sweet saga of the Rai brothers serves as a stark reminder of the challenges facing Kenya’s sugar industry and the urgent need for decisive action to save it from collapse.
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### Key Changes:
1. **Removed redundancy**: The repeated section “A Family Feud with Far-Reaching Consequences” was deleted.
2. **Improved flow**: Reorganized paragraphs for better readability and logical progression.
3. **Grammar and clarity**: Fixed minor grammatical errors and improved sentence structure.
4. **Consistency**: Ensured consistent use of terms like “co-gen” and “ethanol distillery.”
They carry themselves as manufacturers and distributors of baked goods throughout Kenya and lately Tanzania and Uganda. But behind the scenes are underground operations involving tax evasion running into billions of shillings in East Africa. Mini Bakers owners have invested in bakery production of Supa loaf and Akiyda. They are also in fertiliser production and real estate investment. Weekly Citizen exposed the operations of directors led by Wasmin Manji who has political connections and ventures in sugar industry. The family is said to have celebrated when tycoon Jaswant Rai fell out with the establishment.
Mini Bakeries, the company behind the Supa Loaf brand is involved in a tax evasion scandal through planned inside theft with the full knowledge of top managers and directors.
Kenya Revenue Authority is losing billions of shillings in the syndicate according to an insider well versed with the happenings.
The manufacture and distribution of baked goods is done throughout Kenya, and more recently than never before, in neighbouring Tanzania and Uganda undetected.
The management of the bakeries have perfected the art and gimmicks of inside theft just as banks do inside trading, and sneak over one million loaves of bread to the market to evade paying taxes.
According to impeccable sources, over 100,000 loaves of bread are sneaked into the market on a weekly basis, thus denying the taxman millions of shillings that would otherwise help in resuscitating the ailing economy.
The source confided that once noticed by relevant authorities, the management decides to implicate staff in theft of bread landing them in court on several occasions. The court is a coverup deal to show the taxman, goods were stolen hence cannot be taxed. Many of the said cases end up being withdrawn by the complainants with the so said stolen bread finding itself among distributors who pay Mini Bakeries at normal rate but not captured in KRA documents.
One case is that of Ali Omar Faraj, who was employed by Mini Bakeries (MSA) Limited as a trainee manager, with effect from June 1 2007, with a starting with a gross salary of Sh18, 000 per month.
In the course of time, Faraj rose through the ranks to become the manager at Likoni branch, earning a gross monthly salary of Sh70, 000. He was, however, suspended on December 4 2013, after a senior production manager visited and found some loaves of bread were not up to the set standards of production as they were underweight.
Following that discovery, a stock-taking exercise was done which revealed that 185 loaves of bread were also missing.
Although Faraj was surcharged for the said loss, what broke the camel’s back was the fact that during his suspension, further stocktaking was done and it was found that a further 300 loaves of bread were missing.
The letter of summary dismissal is dated December 19 2013 the effective date of dismissal was stated to be December 20 2013.
The matter landed in court and Mini Bakeries was ordered to pay Faraj the equivalent of six and a half month salary in compensation for unfair termination pegged at Sh455, 000, and one month salary in lieu of notice at Sh70,000 totaling to Sh525, 000. Insiders say that the payment was just a tip of the iceberg since Faraj had for years helped the company evade taxes in form of stolen bread.
That the multibillions bread manufacturer working conditions are poor is no secret.
In the High Court, Kakamega Civil Appeal No 96 of 2017, Mini Bakeries appealed against a ruling the bakery and Levi Kariz Oriedo.
Oriedo was employed by the firm and was assigned duties without due care and attention, failing to take any precautions for the safety of the employee. The company failed to provide a safe place of work, failing to provide necessary tools, among others.
On April 21 2017, the parties entered into a consent on liability at 80:20, whose effect was that the company conceded that Oriedo was its employee.
Another court case study is Employment and Labour Relation Court of Kenya at Kericho Cause No 185 of 2915 between Peter Odhiambo Angira (claimant) and Mini Bakeries (respondent) this matter is originated by a memorandum of claim dated July 9 2015. The issues for determination as set out there in are; whether the claimant was unlawfully, unprocedurally and unfairly terminated from employment by the respondent. The claimant’s case is that at all material times to this suit, he was employed by the respondent as an oven man with effect from November 1 2011. He worked hard and was promoted and as a result he was promoted to be in charge of hand bakers and transferred to work in a bakery that transported bread where he served until the date of his unfair and unprocedural termination. At the time of termination, he earned Sh13,556.
It is the claimant’s further case that his employment was terminated unprocedurally and without lawful cause on the grounds of absenteeism which was not true.
The court ruled that Angira was an employee of the Mini Bakeries. The second issue for determination was whether the termination of the employment of the claimant by the respondent was wrongful, unfair and unlawful.
The court found Mini Bakeries had wrongfuly, unfairly and unlawfully terminated the employment of Angira.
The third issue for determination was whether the claimant was entitled to the relief sought. Having succeeded on issues No 1 and 2 above the court ruled, Angira was entitled to the relief sought.
Mini Bakeries has directly and indirectly employed over 3000 people including bicycle vendors and distributors who in turn employ others to deliver Supa Loaf to over 20,000 retail outlets within Kenya, Tanzania and Uganda.
Mini Bakeries sells over three billion slices of Supa Loaf or over 200 million loaves of bread every year, potentially putting its annual revenue at over Sh6 billion.
Mini Bakeries was established by Nurzakhanu Akberali Manji and her husband Akberali Manji, and has over several decades grown to become one of the largest companies in the food and beverages sector.
Nurzakhanu Akberali Manji, nicknamed Mama Kubwa and her three sons are the ones steering the business from a household bakery to a multibillions family empire. They are also linked to feterliser company in Tanzania and Aquava Agencies in Kisumu.
The also own Island Paradise Inn, Akiyda Bakeries and Butali Sugar Mills. It is due to these tax evasion gimmicks that saw the bakery appeal at Uganda court ruled in favour of Uganda Revenue Authority in Application No 102 of 2018 in the Tax Appeals Tribunal at Kambala.
The ruling was in respect of an application challenging a penal tax assessment of Sh52,881,046 for underestimating provisional tax for the period 2017 to 2018.
On the December 17 2017, Mini Bakeries applicant filed a provisional income tax return for the period 2017/2018 with an estimated tax liability of Sh311,446,187. On the June 25 2018, the
applicant filed an amended provisional income tax return of Sh450,000,000 as an estimated tax liability. On December 7 2018, the applicant filed its final income declaring a tax liability of Sh793,783,590.
Upon submission of the final return Uganda Revenue Authority issued a penal tax assessment of Sh 52,881,046.
It was noted that it was not in dispute that the gross turnover declared by Mini Bakeries in its revised provisional tax assessment was less than 90pc of that declared in the final return.
It was clear that the amount estimated in the provisional returns were 56pc which is less than the required 90pc by law.
The court ruled that Uganda Revenue Authority was justified to impose penal tax. Mini Bakeries is also being accused of swindling innocent members of public millions of shilling when it ventured into real estate with plans to build a Sh3.5 billion residential estate off Kamiti Road in Kiambu county which has become a white elephant project.
Mini Bakeries sought to exploit the growing demand for housing in Nairobi metropolis and cut reliance on revenue from bread.
Wasmin is said to have pocketed KRA officers working under Commisioner General Hamprey Watanga Mulongo.Mulongo has been petitioned to investigate.
The Battle of who should managed Mumias Sugar Company pitying the Rai brothers Jaswant Singh Rai of Rai Group and Sarbjit Rai of Sarrai Group has taken an ugly twist with the former resorting to financing a smear campaign against the latter.
It must be known that Jaswant has four Sugar Factories in Kenya namely West Kenya Sugar situated in Malava in Kakamega County, Sukari Industries of Ndhiwa in Homabay County, Olepito Sugar situated at Tangakona area in Busia County and the latest entrant Naitiri Sugar in Bungoma County.
With all these sugar factories the man still wants to add Mumias Sugar Company to himself. His bid to take over Mumias, was rejected by Ponangipalli Rao who was the Company’s Reciever manager.
Rao said that if the bid was awarded to West Kenya, it would amount to a dominant position as the Rai Group which owns West Kenya, controls atleast 41% of the daily total Sugarcane crushing capacity in the Country.
On the other hand Sarbi owns Kinyara Sugar and Hoima Sugar both in Uganda all under Sarrai Group and with each having a success story to share. It is from this background that the Reciever manager developed confidence in Sarrai and saw his capability to run Mumias Sugar Company hence awarding him a 20 year lease.
We should not also forget that the defunct Kenya Sugar Board (KSB) basing on the same reasons in 2011, rejected West Kenya’s application to set up a factory in Busia on grounds that it had a functional Sugar Mill in Malava in Kakamega County and at the same time holding an operating license for Bilibili site in Bungoma County.
What Kenyans should also know is the fact that KCB, The Treasury and the Ministry of agriculture had earlier invited Sarrai to come to Kenya to revive Mumias having seen his capacity after visiting the two sugar factories he owned in Uganda. He was initially not interested as he had anticipated these wars but later accepted after several considerations.
For Jaswant had wanted to have the Mumias Sugar neuclears where his plans were to transport Sugarcane to his companies and hence KCB believed they couldn’t recover their money with Jaswant being in control of Mumias.
It is in the same manner that Jaswant acquired a ones vibrant Panpaper Mills in Webuye at a throw away price of Ksh900 Million after duping the people of Western and Bungoma to be precise that he was going to revive it only to turn it into a Godown to stock cheap illegal sugar. He now brings paper from his Mufindi Paper Mills in Tanzania.
So for the Kenyan Media which should act as the farmers’ watchdog to allow itself to be used by Jaswant to drive a false narative about Sarrai so that he can take over Mumias Sugar Company is saddening and they should refer to the above reasons why he is not allowed to add another Sugar Factory to himself.
This is a man with a big appetite for the sugar Industry in Kenya where he wants by all means to dominate it and have the monopoly hence what Kenyans especially the Sugar farmers should know is that he will no longer be interested in sugarcane development immediately he succeeds to take over Mumias Sugar Company.
It is in black and white that his main agenda is to fully embark on Sugar importation as it is in the public domain that he has been in the center of illegal sugar importation in the Country.
You will all remember what happened to him in 2018 where his Raiply Paper Mills formerly Panpaper in Webuye was raided by the DCI where llegal Sugar worth Ksh250 Million was nabbed.
After cases of sugar suspected to be having laced with Mercury were reported in the Country, the sugar that was seized at the Raiply Mills was also taken for tests in the same year where same results were declared.
He was cleared by the Senate Committee which was led by former Kakamega Senator Cleophas Malala who is now the UDA Secretary General. He told the Country that after licking the sugar he found it fit for consumption.
Jaswant has now started a smear campaign against his brother Sarbjit Rai of Sarrai Group who won the tender to operated Mumias Sugar Company for the next 20 years. He has bought Newspaper Editors and bloggers to run fake stories about MSC and his brother with an aim of destabilising the giant Miller and tainting his brother as one who is not capable of running MSC.
A good example is a full page story that appeared in the Business Daily on 31st May 2023 with the header, ‘Loaders Pile More Woes On Sarrai In Battle For Mumias’. And to show clearly that this was a sponsored story to push Sarrai out of Mumias the Media House went ahead to add a subheading saying, “Workers Want The President To Fullfill His Pledge To Replace Firm With New Reviever Manager’.
The issue here is not about the incapability to run MSC but the President replacing the Sarrai with a new Receiver Manager. Many would ask who is this new Reviever manager that is supposed to replace Sarrai incase President William Ruto fullfils his promise as stated by the said Loaders.
What Kenyans and Sugarcane Farmers in particular should know is that there is enough evidence to show that Jaswant is now financing the campaign against Sarrai with the aim of seeing him out of Mumias so that he can take over and monopolise the sector.
What Jaswant vowed since 2011 when he first set up a Weighbridge within Mumias Sugar Zone at Tangakona in Busia County was to make sure that the ones giant sugar Miller which used to command East and Central Africa is dead so that he can take over as the leader in the market.
It is common knowledge that Jaswant is not ready to allow Mumias Sugar to roar back to life under a diffrent person if not himself for obvious reasons. He knows very well that if left undisturbed, MSC would roar back and it would push him out of business so he would rather push it into the grave for good rather than seeing it operating under a diffrent person something that Kenyans should know that it is not all about his brother Sarrai.
The people of Western Region whose economic backbone has always been Sugarcane farming should therefore keenly follow this happenings to see whether the Government of Kenya shall succumb to Jaswant’s financed anti-Sarrai campaigns and pressure.
A secured creditor wants KCB appointed receiver manager Ramana Rao summoned over a report concerning the accounts of Mumias Sugar company, which he filed in court in January.
Vartox Resources Inc, one of the creditors of the ailing miller says Rao should appear in court and explain the books of accounts of the miller for the last two years.
In an application supported by rival West Kenya sugar company, Vartox also wants KCB group chief executive officer Joshua Oigara to appear in court for cross-examination.
Through lawyer Ismael Abbas, Vartox also claimed that Rao has failed to produce a detailed valuation report as ordered by the court.
Abbas submitted that it has become necessary for Rao to be cross-examined on the inconsistencies, falsehood and coverup that he has engaged in during his time as receiver manager of Mumias Sugar.
He said Rao’s recent actions to lease the assets of Mumias Sugar to Sarrai Group Limited is littered with inconstancies.
“As the applicant’s application dated January 28, 2022 is under insolvency Act 2015, there is no provision for a viva voce hearing unlike in civil cases and the applicant does not have ant way to question Rao on the many inconsistencies to bring him to account for his law as administrator and receiver of Mumias,” said Abbas.
He further submitted that Rao has conducted himself in a manner meant to disenfranchise other creditors and stakeholders of Mumias Sugar, who have a debt portfolio exceeding Sh30 billion.
Abbas said the affairs of Mumias are of significant public interest as held by the court in a ruling on 19 November 2021.
Senior Counsel Paul Muite, who represents West Sugar supported the application saying Rao and KCB should come and explain the inconsistencies.
West Sugar has challenged the lease to Sarrai Group wondering how as the highest bidder, the miller missed out on the 20-year lease.
“He should not only be removed as an administrator, his conduct makes him unsuitable for a receiver or administrator,” Muite submitted.
Muite questioned what Rao is hiding since he has not availed the lease documents as requested
He urged the court to direct Rao to produce all documents supporting every entry that appears in his “abstract” filed with the court on January 18, 2022.
Muite said other than cross-examination, the two should also produce all documents including e-mails, letters and all correspondence exchanged with Rao, all board resolutions and approvals given to the administrator in relation to the leasing of Mumias’ assets to Sarrai Group.
Rao was given the nod to lease Mumias Sugar after receiving bids from several entities.
“Rao has leased the Company’s sugar factory and related assets to the lowest bidder in circumstances that point towards fraud since the 20-year lease executed will expire with Mumias continuing to be mired in debt with its assets potentially wasted and the only financial beneficiaries of the 20-year lease are the lowest bidder and the 1st Respondent. None of Mumias’ historical debts will ever get repaid in those 20 years,” added lawyer Abbas.
Rao allegedly discarded the highest bidder’s bid on the basis that it would not achieve the goals of the lease which was to turn around the Company to profitability.
Rao proceeded to award the bid to the lowest bidder after carrying out a technical evaluation but which losing bidders say was marred by opacity and serious anomalies.
The lawyer said Rao has not explained to Vartox or any of the other creditor how a bid of Sh6 billion over a period of 20 years will revive Mumias whose debts are in excess of Sh30 billion.
“In attempting to justify his flouting of the court orders, the 1st Respondent has relied on provisions of the repealed Companies Act that no longer exist in law. He has attempted to justify filing an abstract because Section 351 of the repealed Companies Act provided for the filing of abstracts,” lawyer Abbas added.
He added that Rao needs to be cross-examined on the basis for his reliance on repealed statutes which impact on his competency to act as a receiver considering he is unable to follow simple court directions and is relying on repealed statutes to carry out his duties.
He pointed out that Rao spent more than Sh 71 million paying lawyers and unnamed consultants and has also procured valuation reports after paying Sh21.9 million.
“Despite requests to him to supply details of these payments and the valuation reports, Rao has ignored these requests”.
Rao, he said, operated Mumias’ assets as though Mumias is his personal property.
“Apart from operating the Ethanol plant when he had no mandate to because KCB’s security did not extend to the Ethanol plant, he has refused to account for any of the proceeds from the operation of the Ethanol plant,” he said.
“Furthermore, he has borrowed money through an overdraft from KCB to the tune of Sh216 million in unclear circumstances, thereby further compounding Mumias’ woes and increasing its debt portfolioand the interest alone on the KCB overdraft amounts to Sh. 23 million, a figure that is more than 1 months’ lease rental that is being paid by the lowest bidder.
He said Rao should be crossexamined so that he can explain in detail the borrowings, what he has used the money for and how it impacted Mumias’ balance sheet as well as when the applicant’s outstanding debt will be cleared based on the current lease to the lowest bidder”, he added.
No cross-examination
Last momth, PVR Rao opposed calls by creditors of the miller to be cross-examined over its accounts for the last two years.
Two creditors- a lawyer who previously acted for the company and who is owed Sh96 million and a supplier, sought to cross-examine Mr Rao over the accounts he filed in court last month.
Lawyer Jackline Kimeto wanted Mr Rao to answer questions surrounding professional and legal fees, which run into millions of shillings, donations, public relations expenses, security costs amounting to more than Sh150 million, repairs and maintenance of the distillery and the factory, among others.
It is also her view that the money the receiver generated in the last two years should have paid KCB’s debt.
Another law firm, Wekesa and Simiyu Advocates also wants Mr Rao to demonstrate the time frame that the highly contested lease will take to repay KCB’s debt.
Also sought is a copy of the evaluation criteria prepared at the time of making the invitations for bids to lease the assets of the company and Mr Rao’s charges per year, since his appointment as the receiver up to December 31, last year.
“Please furnish copies of the consents procured by yourself and the successful bidder from the Competition Authority and the Capital Markets Authority and any other statutory bodies as condition precedents prior to entering any lease and handing over the company assets to Sarrai Group,” the letter adds.
Mr Rao awarded the 20-year lease to Sarrai Group in December but several bidders have challenged it in court.
Wekesa and Simiyu advocates wrote a letter to Ramana Rao demanding the manager to demonstrate the time frame in months and years that the highly contested lease will take to “extinguish the lawful indebtedness of Mumias Sugar Co.Legal battle over the Mumias Sugar Company lease award continues to rage on,with Wekesa & Simiyu Advocates law firm now demanding a copy of the lease agreement entered between the receiver-manager Ponangipalli Venkata Ramana Rao & Sarrai Group in December, 2021.
Mr PVR Rao, the administrator of Mumias Sugar, told the High Court that it is not correct to assume that the highest financial bid should have won the 20-year lease, but he had to consider the technical aspects, besides the financial proposal.
His lawyer, Senior Counsel Kimani Kiragu, said it was his considered opinion that West Kenya, which bid Sh36 billion for Mumias, was not interested in the revival of the miller but intended to stall the operations to ensure it continues to enjoy the monopoly in the sugar industry.
“I clearly indicated that the bids I received would go through both technical evaluation and financial evaluation. It is not correct to proceed, as West Kenya and Tumaz & Tumaz have done, on the basis that the highest financial bid alone would be the winner,” Mr Rao said in an affidavit.
Mr Kiragu further said West Kenya failed to demonstrate how it would pay Sh150 million per month, and Sh1.8 billion per annum, for the lease as captured in its financial bid.
In the affidavit, Mr Rao said he was aware that the Rai Group, which is linked to West Kenya, took over Pan Paper Mills Limited in Webuye in 2016, but the paper-making company has not been in operation for more than 11 years.
The court heard that the bid was for the leasing of assets for 20 years, and not for a sale, as mistaken by farmers and suppliers who filed the case challenging the lease to Sarrai Group.
Mr Kiragu said the Mumias Sugar assets are mainly industrial and are prone to degradation due to corrosion if they are left non-operational for a long time.
He disputed claims that he rushed the process but took about a month to finalise the evaluation and award the lease to the Sarrai Group.
He said Tumaz & Tumaz a company associated with businessman Julius Mwale was trying to fill the gaps in its bid by submitting a fresh one through the court case, and that the company was trying all means to scuttle the process by filing the court cases.
Jaswant Rai of West Kenya has faulted the lease saying the bidding process was shrouded in secrecy and lacked accountability and transparency.
Pulling back revival of Mumias Sugar
When lawyer Jackline Kimeto filed an insolvency petition against Mumias in April, 2019, she was hopeful that her move would pressure the miller into paying her Sh76 million debt.
The miller’s shame
Ms Kimeto had defended Mumias in a suit filed by Kenya Power in 2015, seeking Sh1.1 billion in unpaid electricity bills. She also handled other cases for the company.
But her petition pulled a thread that would eventually undo the seams holding together what was left of Mumias’ clothing, exposing the miller’s shame: It was flat broke and headed down the murky waters of bankruptcy.
More than 80 creditors joined the insolvency suit. Five months later, KCB placed Mumias under receivership. The lender appointed Ponangipalli Venkata Ramana Rao as receiver manager.
On September 25, 2019, the NSE suspended trading of Mumias’ shares on account of the receivership. Mr Rao’s first move was to fire all 900 workers as he started reviewing the miller’s books and operations. The number of staff was a pale shadow of Mumias’ heyday, when more than 9,000 people were on its payroll.
Unhappy with KCB’s move, Ms Kimeto filed an application challenging the manner in which the lender placed Mumias under receivership. She filed a second application seeking to have an administrator appointed to take over the miller’s management.
High Court judge Mary Kasango issued orders temporarily barring Mr Rao and KCB from selling or transferring Mumias’ assets, pending determination of Ms Kimeto’s application.
As the lawyer’s application was still lingering in legal red tape, a section of creditors was growing disgruntled with Mr Rao and KCB. They felt that the receiver manager was biased towards KCB at the expense of other creditors.
Creditors resolved in an October 16, 2019 meeting to have an administrator who would be answerable to anyone owed money by the collapsed miller.
Barely three weeks later, Mumias lenders met with representatives of the Kakamega County government and resolved to form a steering committee that would oversee the revival of the miller.
The committee was to have Ashitiva Mandale, George Kashindi, Lynette Okiro and Ms Kimeto. The final slot was reserved for a representative of the National Treasury. The group would work with Mr Rao.
When Mr Rao took control, the firm had not produced sugar for more than a year. More than 25,000 farmers dumped Mumias over non-payment of their dues. Strangely, ethanol had become the biggest and only reliable source of income for the miller.
Blessing in disguise
The receiver manager halted the remaining operations, pending a restructuring process that would be guided by a detailed review of issues affecting the company.
On March 15, 2020, President Kenyatta announced a partial economic shutdown after Kenya reported her second and third Covid-19 cases. It was doom for most companies.
But for companies like Mumias, it was a blessing in disguise because ethanol suddenly became the most sought after raw material because there was not enough hand sanitiser to satisfy the local demand.
Even the police were surrendering ethanol confiscated from illicit brewers to make more sanitiser. Mumias had resumed ethanol production one month before the partial economic shutdown. At some point, the miller was producing 150,000 litres of ethanol a day.
There was, however, a pause between December 2020 and February 2021 following a molasses shortage. Mr Rao eventually sourced for molasses from rival millers and resumed the ethanol production.
Mumias also received a huge boost from the Kenya Revenue Authority (KRA), which opted to waive a Sh11 billion tax bill, a huge chunk of the miller’s debts. In April last year, Mr Rao said he intended to lease out Mumias’ assets for a 20-year period that would ensure the miller’s survival and repayment of debts.
Tycoon Narendra Raval emerged as the most interested candidate through his Devki Group of Companies. Court proceedings would later reveal that the Devki Group had placed a Sh60 billion bid for the 20-year lease. But Mr Raval’s firm did not want the public scrutiny that stakeholders were demanding and withdrew the bid on June 4.
Mr Rao was then summoned by the Senate to explain the leasing plans. He revealed that he had sourced for potential strategic investors.
The companies he had approached were the Devki Group, Catalysis Group (Russia), Sarrai Group (Uganda), Kruman Associates (France), Kibos Sugar, Third Gate Capital Management, Godavari Enterprises and Premier JV (India).
On June 18, activist Okiya Omtatah filed a suit at the High Court’s Constitutional and Human Rights Division in Nairobi seeking to have Mr Rao removed, and the National Treasury compelled to revive Mumias.
Conflict of interest
He argued that Mr Rao had acted unprofessionally by failing to explain the formula used to settle on the eight bidders. He also raised a potential conflict of interest on the receiver’s past dealings with the Devki Group.
Mr Rao had sold scrap metal to Devki Group while managing affairs of Kwale Sugar during a past receivership spell. Mr Omtatah also argued that Mr Rao had failed to issue any specific details to the public on Mumias’ state of affairs since taking over as receiver manager.
Devki Group Chairman Dr. Narendra Raval.
After Mr Rao conducted a fresh tendering for leasing, Mr Omtatah successfully sought orders compelling him to file financial statements and bids placed by the bidding companies. The documents would reveal that Mr Rao settled for the third lowest bid price of Sh6.2 billion, floated by Uganda’s Sarrai Group.
One of Mumias’ key suppliers, Gakwamba Farmers Cooperative Society, would join Mr Omtatah in protesting the manner in which Mr Rao was handling the deal.
Gakwamba filed a suit in the Commercial & Admiralty Division of the High Court in Nairobi on August 2 last year, faulting Mr Rao for entering negotiations with Devki Group and sought orders barring any deal.
“Mr Rao and KCB have not carried out an objective cost-benefit analysis to determine whether the so-called strategic investor is the most effective way of reviving MSCL and ending the suffering of its sugar farmers and other stakeholders,” the society argued.
Gakwamba owns 1,000 ordinary Mumias shares. Farmers under the group are also owed over Sh25 million for cane supplied. The group argues that Mr Rao should not be allowed to lease out Mumias assets through private treaty, and only a process accessible to the public should be implemented.
Justice Wilfrida Okwany agreed with the farmers. On September 23, the judge ordered that Mr Rao open bids in the presence of all bidders. Interestingly, the bids remained a closely guarded secret before Mr Omtatah later secured orders compelling Mr Rao to file the information in court.
Three days after the farmers filed their case, Mr Rao advertised a fresh procurement process for the leasing deal. Not all were happy with the move. Lawyer John Khaminwa had at this point joined the insolvency petition against Mumias. He is owed money by the miller, but wanted to support its revival rather than liquidation.
On September 16, Mr Khaminwa filed an application in the insolvency suit seeking to have Mr Rao cited for contempt of court. The lawyer argued that the court orders stopping sale and transfer of the company’s assets also covered leasing deals, hence Mr Rao was in violation.
Insolvency suit
Mr Rao and KCB opposed the application, holding that during the lease period all assets would still be owned by Mumias. A week later, KCB and Mr Rao filed an application in the insolvency suit, seeking to stop the Senate from further summoning them or interfering with the Mumias receivership.
The two argued that the Senate was interfering with their rights by giving instructions on how to handle the collapsed miller’s affairs. The Senate had on September 29 – a day before Mr Rao and KCB filed their application – requested the receiver manager to comply with the court orders.
Justice Alfred Mabeya had taken over the insolvency suit, and delivered one ruling to handle four applications – Ms Kimeto’s seeking to stop selling of Mumias assets, her request for appointment of an administrator, Mr Khaminwa’s contempt of court allegations and Mr Rao’s bid to stop Senate summons and directions.
In his November 19, Justice Mabeya agreed with Ms Kimeto on the need for an administrator. He, however, appointed Mr Rao the administrator while upholding his role as receiver manager.
The judge held that the Senate had not done anything to indicate interference, as it had only sought clarity from Mr Rao and requested that he comply with court orders. But the judge issued orders barring the Senate from directing Mr Rao on how to conduct business in his receiver manager capacity.
Mr Khaminwa’s contempt of court application was also dismissed, as Justice Mabeya ruled that the leasing would not lead to a sale or transfer of Mumias assets. “Mr Rao is at liberty to proceed with the process of leasing the Company’s assets subject to strict observance of the Competition Act, 2010 Laws of Kenya,” the judge said.
The fresh bidding round attracted six companies. The Jaswant Rai family’s West Kenya Sugar proposed Sh36 billion and became the highest bidder following the Devki Group’s exit.
Tumaz and Tumaz Enterprises, owned by Butere-based businessman Julius Mwale, was the second highest bidder with Sh27.6 billion. A group of French and Turkish investors, through Kruman Finances Limited, bid Sh19.7 billion.
The Sarrai Group, owned by Jaswant Rai’s brother Sarbi, bid Sh6.2 billion. Only Kibos Sugar and Pandhal Industries had lower bids than Sarrai’s as they each wanted to pay Sh5.9 billion. The Sarrai Group got an early, but short-lived Christmas gift as Mr Rao declared the Ugandan firm the best bidder on December 22.
The firm was to take over Mumias operations, excluding ethanol production. Rumours of disgruntled bidders threatening court action started flying almost immediately. Tumaz and Tumaz Enterprises was the most vocal, stating that it was one of the highest bidders.
Kakamega County filed a suit at the Vihiga High Court seeking to stop Mr Mwale’s firm from interfering with Mr Rao’s decision.
Highest bidder
Mr Rao filed a similar suit in Nairobi, arguing that Mr Mwale was planning to disrupt his plans to rescue Mumias through the leasing deal. On January 14 this year, five farmers challenged Mr Rao’s decision to pick Sarrai, arguing that the receiver manager conducted an opaque process.
Lambert Lwanga Ogochi, Augustino Ochacha Saba, Prisca Ochacha, Robert Mudinyu and Wycliffe Barasa Ngong filed yet another suit. Justice Wilfrida Okwany issued orders barring Sarrai Group from starting operations.
West Kenya, Tumaz and Tumaz Enterprises, Gakwamba Farmers Cooperative Society and Mumias Outgrowers Company have since been enjoined in the suit. West Kenya maintains that it was the highest bidder but was unfairly locked out.
In response, Mr Rao argues that in overlooking West Kenya, he was following Justice Mabeya’s orders to comply with competition laws. He argued that if West Kenya would have acquired the lease, the Rai family-owned firm would have become a monopoly in the sugar industry.
The receiver manager adds that West Kenya had several cases against former workers and competitors, and that the Rai family firm did not submit a detailed investment plan in the bid.
Gakwamba Farmers claim that the five farmers who obtained orders stopping Sarrai from proceeding with the leasing deal are strangers sponsored by West Kenya.
In the insolvency petition, Dubai-based Vartox Resources Inc and Ms Kimeto have also challenged Sarrai’s leasing deal, arguing that the process was opaque and intended to benefit only KCB and Mr Rao.
The two argue that Sarrai’s Sh6.2 billion bid was not sufficient to pay Mumias’ debts, yet other firms would have cleared the miller’s liabilities in less than 10 years.
Vartox says that Mumias owes it Sh6 billion, which was secured with the miller’s ethanol plant. The Dubai firm holds that Mr Rao has refused to acknowledge its rights to the plant despite several notifications.
The plant is also collateral for loans that Ecobank and France’s Proparco issued to Mumias. Ecobank, Proparco and Vartox appointed Harveen Gadhoke as the plant’s receiver manager.
All focus is now on the case filed by the five farmers. Justice Okwany will hear the parties on March 14. Orders seeking to stop the Sarrai Group from taking over Mumias operations will lapse on the same day.
In January 2017, a lavish wedding between Gavneet Chatthe and Rajbir Rai was celebrated at the Sarova Mara Game Camp within Maasai Mara.
Several prominent businessmen and politicians attended the lavish invite-only ceremony, among them Deputy President William Ruto.
Clearly, the Rai Family enjoys a cordial relationship with the DP. He, however, is neither the first nor the only one. The family has enjoyed close association with the Daniel Moi, Mwai Kibaki and Uhuru Kenyatta governments for over four decades, and has reaped handsomely from the resultant political patronage.
The Family – made up of patriarch Tarlochan Sigh Rai (deceased), his wife Sarjit Kaur, and sons Jaswant Rai, Jasbir Rai, Iqbal Rai and Daljit Kaur Hans – came into prominence when Tarlochan bought off large tea and coffee estates from Belgians fleeing then Belgian Congo – now Democratic Republic of Congo – in the 1960s.
He built a fortune and entered Kenya by partnering with a fellow Asian to produce chests for their coffee and tea in Eldoret in the 1970s.
To say the family has greatly benefitted from political patronage in the sugar, wood, cooking oil and soap manufacturing businesses is understatement; it owns and dominates these sectors.
The Rai family has cultivated an appetite for affiliation to prominent politicians for since 1993 when Raiply partnered with Nicholas Biwott and former President Moi after the brutal murder of its previous partner Shabir and his wife in Eldoret.
The biggest manifestation of the industrialist family’s reach in the Jubilee government came with the acquisition of Kenya’s only paper mill, Pan Paper Mills in Webuye, at the chickenfeed price of 900 million shillings
Following this partnership, Rai, who came to Kenya in 1971 from Uganda after the expulsion of Asians from the country by the then President Idi Amin, began enjoying concessions in the excision of Mt Elgon Forest, where they cultivate hard wood trees for the Eldoret-based wood processing industry.
So beneficial was the partnership with Moi and Biwott that Rai’s family business quickly expanded from timber to sugar as they continued to enjoy political benefaction, courtesy of the elder Rai’s collusions.
Through their companies – Rai Investments Limited, Rai Plywoods (Kenya) Limited, Rai Products Limited, Rai Holdings Limited, Tulip Properties Limited, Rai Expo Park Limited, Tarlochan Singh Rai Limited, Kabarak Limited, PBM Nominees Limited and Sarjit Singh & Ram Singh Limited – the family has continued to enjoy privileged business opportunities.
Rai Products Limited’s original shareholders were Rai Investments Limited, Tarlochan Singh Rai, Jaswant Rai and former Laikipa Senator and powerful minister G.G. Kariuki.
Kabarak Limited, for instance, is associated with Moi owns 1.4 per cent of Raiply, and has continued to get licences to log indigenous hardwood, according to a report recently released by the Jubilee government-appointed task force of forest destruction.
It is during the partnership with Biwott and Moi that Raiply earned the license to log protected public forests, which it did with wanton promiscuity.
The family then wooed the Kenyatta family when Jaswant allegedly secretly siphoned family business funds sometime in the 1990s and invested in two Kenyatta family businesses – Commercial Bank of Africa and Timsales, which was a competitor to RaiPly.
But the biggest manifestation of the industrialist family’s reach in the Jubilee government came with the acquisition of Kenya’s only paper mill, Pan Paper Mills, Webuye, at the chickenfeed price of 900 million shillings. The last audit value of the Mills, done in 2016, was Sh19 billion.
The receiver managers in charge during the second bail out of the mill – which was a joint venture between the government and an Indian investor – confessed that the presence of powerful manipulation led to the cheap sale of the mill’s assets to the Rais; Sh900 million is less than what was injected in at the last bailout.
Rai group of company directors when purchased the Webuye paper mills.
Testy family relationship
The purchase gave the Rai family and their backers a whooping Sh18 billion payday in assets for a Sh900 million investment. Given its history, it’s all in a day’s work.
Two of the Rai brothers, Sarbjit and Jasbir, following family disputes, have since established Nile Plywoods (Uganda) Limited and Poly pack Limited in Uganda, where they equally enjoy more than cordial ties with President Museveni. The two also have a 25 per cent shareholding in Lukenya Flowers Limited.
The family also has substantial investment in India that at one time led to protests by family members against Tarlochan over the millions of shillings invested in the Asian country.
Jasbir once accused Jaswant of diverting Sh100 million from the family’s Standard Chartered Bank account, Eldoret Branch, to Kenya Commercial Finance Company in Nairobi without the involving the rest of the family consent.
The matter was reported to police by Tarlochan and Jasbir was later paid Sh46 million before he and Sarbjit moved to Uganda, where they then established PolyPack Limited with a Ksh350 million capital investment equally owned by Jasbir and Sarbjit, and Nile Plywoods (U) Limited with US$ 2.5 million, with a joint 45 per cent shareholding.
Sarbjit would later buy out Karim Hirji’s 51 per cent shareholding after obtaining Ksh180 million from his father.
When the crackdown on sugar smuggling barons began in the country, it was Leader of Majority in the National Assembly Aden Duale, in a statement to parliament, who linked the Rai family to the importation of 187 million kilogrammes of sugar during the duty free period allowed by the government, but which had been contaminated by copper and mercury due to poor handling.
Tellingly, it is former Kakamega senator Bonny Khalwale who came to the defence of the Rais – with the weedy assertion that some barons wanted to close down West Kenya Sugar factory.
The family’s appearance before a parliamentary committee for ‘grilling over the saga turned out to be a tragic farce where committee members displayed rare carnal excitement at being close to such a immersing figure as Jaswant. It evoked thoughts of “birds of a feather”.
Reportedly, an MP from Western Kenya had come in with fat wads of cash on behalf of the Family, which he had distributed amongst the committee members prior to the meeting.
