Kenya Insights

Tag: Kibos Sugar

  • Kibos Sugar Marred With Negligence Accusations As Another Worker Dies

    Kibos Sugar Marred With Negligence Accusations As Another Worker Dies

    Kibos Sugar and Allied Factories are battling a new scandal, one of the many that has rocked the company founded by the late Patriarch Sardar Channan Singh Chatthe who ran the Chatteh Group of Companies and trustee of Kibos Sugar and Allied Industries LTD(KSAIL) until his death last year.

    The latest incident involves Ezra Ron Conyando a worker at the sugar milling plant who fell and drowned at the private miller’s water treatment plant while repairing a damaged pipe on April 27. He died while receiving treatment at Consolata Hospital in Mamboleo.

    According to his kin and co-workers, this is a case of negligence in the side of the management accusing them of not taking the safety of the workers with the seriousness it deserves.

    Ms Sharon Chepkurui Conyando, a widow to the late in an interview with a local newspaper, put the blame right on the management’s door saying that her husband raised concerns about workplace safety since he joined the miller last year.

    She believes if he had switched jobs, he’d still be alive.

    “He told me he feared for his life working at the factory because the place was dangerous. He was praying to God that he gets another job elsewhere because he was exposing himself to danger every day,” Ms Sharon told the newspaper.

    The late Mr Ezra Ron Conyando

     

    Workers speaking to the press workers in confidence owing to the sensitivity of the case, said it was a case of negligence. pointed out that there has been an issue with a certain pipe at the plant that was dangerous to workers, adding that Conyando was not given floaters to prevent him from drowning. The claims were supported by his family, who claim had there been swift response by the company, their son would not have died.

    The family of the late are also unhappy with the manner in which they’ve been treated post the death of their son and felt like the management was engaging in hide and seek and suspected a coverup.

    Mr Conyando’s father Gordon Ajuma Onyando, 65, said they were denied an audience with the top management.

    “We were talking only to the people on the periphery and not the management and when we asked about many other things including compensation, all they told us was that we should concentrate on the immediate, which is the burial, and not compensation,” he said.

    The mother accused the management of negligence. “The company has neglected its workers. We enquired and were told that there are life jackets and floaters. Why were they not given to my son? Why wasn’t there an alarm to alert other people? That forced his fellow workers to run on foot to call for help. According to me, there was a lot of negligence on the part of the Kibos management,” said Ms Ayieko.

    Mr Conyando graduated on November 29, 2019 with bachelor’s degree in science, zoology and botany. He was in charge of reverse osmosis and plant operations in the water treatment section, having joined in 2021. His wife recalled how the two married in a colourful wedding on December 11, 2021.

    Similar Incidents

    As the family of Mr Conyando seek for justice, the company has had an ugly history of similar incidences of deaths in the company.

    In April last year, in an incident confirmed by the then County Commander Samuel Anampiu, a worker identified as Maurice Ongonyo died at the private mill after falling over the factory’s conveyor belt crushing him instantly. The deceased was in charge of the bell tractor operator.

    In 2020, Simi Chatthe who’s also a director at the company was allegedly involved in an accident with the company’s car killing three people on the spot from reckless driving.

    Chatthe‘s sons also directors at the company.

    The official company’s car hit 3 people ( Meshak Ouma (37), George Oudi (28) and Martin Bonyo (25) who died on spot. This happened at around 9 pm in July, 2020.

    According to witnesses who were present at the gory scene, a speeding driver unsuccessfully attempted to overtake the three who were on a bodaboda but ended up knocking down and killing them all on the spot.

    The car was driven into the the factory premises then the occupants fled away. To cover up the culprits, the suspect who was arrested and later released on bond following the incident was in fact neither driving nor inside the said vehicle which caused the accident.

    The incident sparked protests amongst locals who stormed the factory seeking justice for the victims.

    Nothing much has been heard from the incident past the protests and neither leaders from the area raised a voice.

    Polluting Lake Victoria and Local Leaders Silence

    In 2020, a report that documents compliance levels of various industries using the Kisumu Water and Sewerage Company (Kiwasco) sewer system found Kibos Sugar to be one the companies contributing to the pollution of Lake Victoria.

    The company was named among the list of industries that routinely fail to meet standards for treating their waste before dumping it into public sewer lines.

    In March 2020, NEMA ordered the immediate closure of Kibos Sugar and Allied Industries for violating air quality regulations. This followed a survey which found out that emissions front he sugar miller are five times more than what is acceptable.

    The issue of Kibos and pollution has been a subject of discussion in parliament, environmentalists forums, it has sparked protests from locals who bare the wrath of poising the Kibos River and Lake Victoria where the river flows to, however, the company has stood firm and maneuvered perhaps given their political connections, deep pockets.

    https://twitter.com/ntvkenya/status/1229112607635902464?s=12&t=GDyVJaCOR89Fb8XDsSvikQ

    In November 2020, Kibos became a topic in parliament following a petition accusing the firm of unfair Labour practices which included low wages, management blocking workers from joining unions to fight for their rights, the firm was accused of hiring foreigners (Asians) as expats on unskilled jobs that locals could do.

    https://twitter.com/nassemblyke/status/1331218077007147008?s=21&t=6oJwNbQm5BHAver9Y79nfg

    The debate stemmed from allegations that Kibos was hiring foreigners without legitimate work permits and how foreign investors treat locals unfairly.

    https://twitter.com/nassemblyke/status/1331227987195404288?s=21&t=6oJwNbQm5BHAver9Y79nfg

    Kibos was put on the spot for negatively impacting blind school children and the community at large.

    https://twitter.com/nassemblyke/status/1331239777593593864?s=21&t=6oJwNbQm5BHAver9Y79nfg

    While the discussion on the environmental impact of the company has been of a national discourse, there has been loud silence from local leaders who’re much aware of the impact the poisoning of the river has been costing the community but instead of fighting for compliance, they’ve resorted to loud silence.

    A section of polluted Kibos River flowing into lake Victoria.

    Most of the local leaders are said to be in the pockets of the company who’re alleged to be funding their campaigns in exchange for their silence. NEMA officials should also be questioned for the inactivity and silence over the pollution. It’s speculated some of the officers have been compromised, our investigations will stretch further.

    The latest tragic incident at Kibos comes barely a month after a man died in a boiler at a steel factory in Thika.

    Mr Caleb Otieno, 25, reportedly fell into the metal boiler at Blue Nile Rolling Mills Ltd in a horrific accident that shocked his workmates, family and friends.

  • Accusations Of Kibos Sugar Spreading Deadly Covid Strain In Kisumu Shines Light On Its Fake Expats Saga

    Accusations Of Kibos Sugar Spreading Deadly Covid Strain In Kisumu Shines Light On Its Fake Expats Saga

    Kibos Sugar Company is once again in the light following accusations that the firm was donkey responsible for the outbreak of Covid-19 Delta variant in Kisumu.

    National Assembly’s Health committee now wants government health institutions to investigate how the COVID-19 Delta variant got into the country.

    This follows accusations by the health ministry that the variant was brought in by Kibos sugar company workers who returned to the country from India.

    MPs held hearings on a petition filed by a Muhoroni resident, who wants the sugar company to take full responsibility for the spread of the variant in western Kenya.

    The health committee has been sitting in Kisumu County questioning various government departments over the matter.

    According to statistics from the health ministry, the first patient to test positive for the variant works in the factory.

    Deputy Director of Immigration in charge of Nyanza region Tom Anyim told the MPs the workers who came into the country through Jomo Kenyatta International Airport (JKIA) were subjected to all the ministry of health Covid-19 protocols before being allowed in.

    It has been questioned why the workers were allowed into the country without observing the protocols while at the time the variant was tearing up India and on full international capture. Immigration officials are being accused of overlooking the safety measures after being pocketed.

    According to the immigration officer, the Indians travelled to the country between September 15, 2020 and March 4, 2021.

    The officer was also hard-pressed to explain why the expatriates from India were doing duties that could as well be carried out by the locals.

    He said 25 foreigners from India were issued with permits to work at Kibos in accounts, ICT, engineers and quality control sections.

    He said those who were allowed entry were coming for short-term assignments, which included plant installation and equipment maintenance at Kibos.

    “There are those who were to install a new fertilizer plant at Kibos while the others were workers of Ayoki company, which is contracted by the sugar miller to do short-time assignments such as maintenance of plants and equipment and installation of equipment,” he said.

    The softening explanation meant to clean up the company of any blame is sharply opposed by the petitioner.

    Vihiga Woman Representative Beatrice Adagala questioned why the department gave permits to people who did not possess any special skills at the expense of unemployed but qualified Kenyans.

    “Kenyans are looking for jobs while you let people with skills that are available to come and work here,” she said.

    “These are not specialised skills. That expertise is available in the country, so allowing them to work here goes to denying our people jobs,” Adagala said.

    She said Kenyans have eyes on the immigration department to help control the borders and keep Kenyans safe, a mandate which she claimed the department ignored.

    “It is very sad when you talk of accountants being imported to work here. Why would you ship in people from India, who in turn infected our people? You put Kenyans at risk and you must be held accountable. The region has suffered because of your negligence,” Adagala said.

    Charles Ochieng Atyang’, who presented the petition on behalf of 91 residents of Miwani accused Kibos and the Immigration department of illegally bringing in workers of Asian origin from India leading to the massive spread of the Delta variant in the area.

    Kibos Sugar and Allied Industries have been accused by locals of smuggling in foreigners to work in the firms taking away the jobs that could easily be done by locals. They’re now asking the government to conduct an audit of the ‘expatriates’ employed in the firm to a certain their claims that most are unqualified without any skills to match the locals.

    Kibos has had a rough time with the community in the recent past and this is largely attributed to their lack of adherence to environmental protection. Kibos has also been accused of taking advantage of their financial muscles and being one of the few industries employing locals to threaten authorities into overlooking their destruction to the environment.

    Having been accused of releasing the affluent from the factory into River Kibos ending up in polluting Lake Victoria, Kibos threatened the county government and Nema with exiting the Kenyan market. A professional blackmail that worked since employment they offer would cease.

    At some point, Kibos sugar company and Allied Industries Ltd was shut down by NEMA over non-compliance in one of many illegal activities done by the family.  Kibos had been emitting 245 micrometres of pollutants, five times more than the national standards. Kibos failed to adhere to emission reduction measures as set out in part (IV) of the 5tg schedule of the Air Quality Regulation 2014.  With this contempt, The National Environment Management Authority (NEMA) ordered for the immediate closure of Kibos Sugar and Allied industries for failing to comply with air quality regulations last year 2020. The authority undertook an ambient air quality monitoring from December 17-21, 2019.

    Because of the serious environmental and health risk posed by the emission of particulate matter, the Authority considered that the c boiler operations contravened Article 42 of the Constitution which guarantees everyone a right to clean and healthy environment. The firm had been given the firm 30 days to install an effective air pollution control system at the boiler and provide its performance levels to Nema.

    Kibos Sugar Company Ltd has managed to infiltrate, bribe and buy the silence of surrounding Luo leaders who now can’t raise a voice on the health hazards the locals are exposed to by the company thereby leaving them for the dead. The management thrives in impunity.

    High Court judge SM Kibunja revoked the Environmental Impact Assessment (EIA) license issued to the factory saying it was illegally and un-procedurally obtained.

    In our previous article, Kenya Insights revealed how  illegal Asian Immigrants have infiltrated the Asian companies in Kenya whose owners have managed to pocket the mandated authorities to keep off. Locals have complained now and again on the encroachment of basic jobs of which smuggled Asian nationalities have occupied.

    Kibos sugar company owned by one of the Asian families is one of the many examples of failed Immigration mission to honour their allegiance to protecting the security of the country at all cost. According to our source, the jobs specifications for the alien workers in the company include security, supervisors in boilers, electrical mechanics, boiler operators, welders, fitters, timekeeper clerks and store men. 

    Their salaries according to oranges from Kshs 40,000 to Kshs 105,000 whilst the highest paid local employee earns about Kshs 45,000 p.m whom is boiler engineer. Not forgetting that these foreign workers are not subjected to statutory reductions such as for the NSSF and NHIF.

    At some point in 2019, Immigration department attempted to enforce stringent immigration-related requirements and rules to protect the local labour market and ensure compliance with the immigration laws.

    The Department of Immigration announced that it increased its scrutiny of applications for long and short-term work permits.

    With this, More work permit applicants were likely to see rejections and likely an increase in requests for additional documentation. Employers to obtain clearances from regulatory bodies in advance and should be ready to provide additional documentation, if required.

    The sense of ownership and double standards the Chatthe family enjoys is beyond a normal citizen’s imagination. Kibos Sugar and Miwani factories have employed hundreds of undocumented Asians and the authorities are aware but maim on the matter as they are under the payslip of the barons.

    These Asian aliens are said to be smuggled inn masquerading as missionaries, clergymen etc.

    The Chatthe’s, who co-own Kibos Sugar factory, have destroyed the sugar industry in Kenya through the importation of toxic sugar, illegal dealings, killings on drunk driving and getting away with murder with the help of the authorities.

    Toxic emissions from the factory putting the river and being overlooked putting locals in danger of untold dangerous long term health damages.

    Besides air pollution, they were also on the radar for water pollution as the factory’s ethanol distillery has poor waste disposalpolluting the two rivers with dangerous chemical waste. The High Court in Kisumu on October 31 revoked the license of Kibos Sugar & Allied Industries Ltd (KSAIL) and shut down all its five factories after the Killer directors ignored NEMA warning and continued to pollute river Awach which leads to Lake Victoria.

    Chatthe‘s sons.

    Kibos Sugar factory was founded by Patriarch Sardar Channan Singh Chatthe who ran the Chatteh Group of Companies and trustee of Kibos Sugar and Allied Industries LTD(KSAIL) he fried in January. Company is currently run by Mr. Sukhwinder Singh Chatthe — one of whose flamboyant sons (Simi Chatthe) whom is deemed to have been behind the company car’s wheel one fateful night when the official company’s car hit 3 people ( Meshak Ouma (37), George Oudi (28) and Martin Bonyo (25) who died on spot. This happened at around 9 pm in July, 2020 last year.

    According to witnesses who were present at the gory scene, a speeding driver unsuccessfully attempted to overtake the three who were on a bodaboda but ended up knocking down and killing them all on the spot.

    The car was driven into the the factory premises then the occupants fled away. To cover up the culprits, the suspect who was arrested and later released on bond following the incident was in fact neither driving nor inside the said vehicle which caused the accident.

    Toxic emissions from the factory putting the river and being overlooked putting locals in danger of untold dangerous long term health damages.

    In 2018, the Director of Public Prosecutions Noordin Haji ordered the prosecution of Mr Chatthe, Crossley Holdings and seven other suspects for conspiracy to fraudulently transfer the land between 2007 and 2008. Crossley, through a law suit, claimed to have acquired the land through an auction in 2007 and wanted the court to issue eviction order to the current occupants.

    For the silence, Kibos Sugar management giving donations to locals overseen by Kisumu Governor Anyang Nyong’o.

    The company, which was represented by Mr James Orengo, claimed the parcel of land registered as LR No 7545/3 was then occupied partly by trespassers and illegal settlers.

    Kenya Sugarcane Growers Association Secretary-General Richard Ogendo accused Crossley Holdings of attempting to defraud the State-owned miller of its prime land.

    Crossly Holdings owned by Kibos Sugar Company chairman Sukhwinder Singh Chatthe. Agriculture Permanent Secretary Hamadi Boga told a National Assembly committee how the land was fictitiously transferred to Crossley Limited by people out to defraud the miller.

    Taking advantage of their acquaintance with the DP Ruto who is the defiant face of impunity in government, this family like Mr.Jayesh, Rai family are taking advantage of Kenya’s weakest link -Corruption to have the guts.

    DP Ruto at the furthest end (Right) with the Chatthe family.

    April 2021, another horrible incident happened in the company. Maurice Ongonyo, a bell tractor operator died on Thursday at the Kibos Sugar factory paper mill section after falling a moving conveyor belt, reports say. The incident that happened 1.30am would later turn out to be a case of an overworked, not motivate and underpaid employee incident.

    With relevant authorities charged with safeguarding environment having failed to discharge their mandate to stop ‘the rot’ going on in River Kibos, regional lobby groups have been urging residents of the Lakeside County and its environs to boycott sugar from Kibos Sugar factory.

  • Immigration On The Spot For Allowing Kibos Sugar Cartels To Keep Illegal Immigrants

    Immigration On The Spot For Allowing Kibos Sugar Cartels To Keep Illegal Immigrants

    Illegal Asian Immigrants have infiltrated the Asian companies in Kenya whose owners have managed to pocket the mandated authorities to keep off. Locals have complained now and again on the encroachment of basic jobs of which smuggled Asian nationalities have occupied. 

    Kibos sugar company owned by one of the Asian families is one of the many examples of failed Immigration mission to honour their allegiance to protecting the security of the country at all cost. According to our source, the jobs specifications for the alien workers in the company include security, supervisors in boilers, electrical mechanics, boiler operators, welders, fitters, timekeeper clerks and store men. 

    Their salaries according to oranges from Kshs 40,000 to Kshs 105,000 whilst the highest paid local employee earns about Kshs 45,000 p.m whom is boiler engineer. Not forgetting that these foreign workers are not subjected to statutory reductions such as for the NSSF and NHIF.

    At some point in 2019, Immigration department attempted to enforce stringent immigration-related requirements and rules to protect the local labour market and ensure compliance with the immigration laws. 

    The Department of Immigration issued the following directives, effective immediately:

    1. Tax Compliance Certificate requirement. Foreign nationals and employers applying for a work permit renewal must submit an individual and company Tax Compliance Certificates. The Certificate, which all employers and employees must obtain on an annual basis as part of tax compliance laws in Kenya, must meet Kenyan Revenue Authority regulations.

    Impact. Work permit renewal applications submitted without the document will be rejected, which will delay the immigration process.

    Employment information. Employers must submit information on their employees (including the name, gender, occupation, date of employment, nationality and educational level) using a template on the National Employment Authority (NEA) website or the NEA integrated Management system by July 8, 2019.  In future years, the deadline will be January 31 for the preceding year’s information. In addition, employers must maintain a list with the same information in case of a government inspection.

    Impact. Employers who fail to send their employee information by the deadline or who fail to maintain the list may face penalties in accordance with the law.

    Increased scrutiny. The Department of Immigration has announced that it has increased its scrutiny of applications for long and short-term work permits.

    Impact. More work permit applicants are likely to see rejections and there will likely be an increase in requests for additional documentation. Employers should obtain clearances from regulatory bodies in advance and should be ready to provide additional documentation, if required.

    The sense of ownership and double standards the Chatthe family enjoys is beyond a normal citizen’s imagination. Kibos Sugar and Miwani factories have employed hundreds of undocumented Asians and the authorities are aware but maim on the matter as they are under the payslip of the barons.

    These Asian aliens are said to be smuggled inn masquerading as missionaries, clergymen etc.

    The Chatthe’s, who co-own Kibos Sugar factory, have destroyed the sugar industry in Kenya through the importation of toxic sugar, illegal dealings, killings on drunk driving and getting away with murder with the help of the authorities.

    Toxic emissions from the factory putting the river and being overlooked putting locals in danger of untold dangerous long term health damages.

    At some point, Kibos sugar company was shut down by NEMA over non-compliance in one of many illegal activities done by the family.  Kibos had been emitting 245 micrometres of pollutants, five times more than the national standards. Kibos failed to adhere to emission reduction measures as set out in part (IV) of the 5tg schedule of the Air Quality Regulation 2014.  With this contempt, The National Environment Management Authority (NEMA) ordered for the immediate closure of Kibos Sugar and Allied industries for failing to comply with air quality regulations last year 2020. The authority undertook an ambient air quality monitoring from December 17-21, 2019.

    Because of the serious environmental and health risk posed by the emission of particulate matter, the Authority considered that the c boiler operations contravened Article 42 of the Constitution which guarantees everyone a right to clean and healthy environment. The firm had been given the firm 30 days to install an effective air pollution control system at the boiler and provide its performance levels to Nema.

    Kibos Sugar Company Ltd has managed to infiltrate, bribe and buy the silence of surrounding Luo leaders who now can’t raise a voice on the health hazards the locals are exposed to by the company thereby leaving them for the dead. The management thrives in impunity.

    Besides air pollution, they were also on the radar for water pollution as the factory’s ethanol distillery has poor waste disposal  polluting the two rivers with dangerous chemical waste. The High Court in Kisumu on October 31 revoked the license of Kibos Sugar & Allied Industries Ltd (KSAIL) and shut down all its five factories after the Killer directors ignored NEMA warning and continued to pollute river Awach which leads to Lake Victoria.

    Chatthe‘s sons

    Kibos Sugar factory was founded by Patriarch Sardar Channan Singh Chatthe who ran the Chatteh Group of Companies and trustee of Kibos Sugar and Allied Industries LTD(KSAIL) he fried in January. Company is currently run by Mr. Sukhwinder Singh Chatthe — one of whose flamboyant sons (Simi Chatthe) whom is deemed to have been behind the company car’s wheel one fateful night when the official company’s car hit 3 people ( Meshak Ouma (37), George Oudi (28) and Martin Bonyo (25) who died on spot. This happened at around 9 pm in July, 2020 last year.

    According to witnesses who were present at the gory scene, a speeding driver unsuccessfully attempted to overtake the three who were on a bodaboda but ended up knocking down and killing them all on the spot.

    The car was driven into the the factory premises then the occupants fled away. To cover up the culprits, the suspect who was arrested and later released on bond following the incident was in fact neither driving nor inside the said vehicle which caused the accident.

    Locals staged protests but all were in vain.

    In 2018, the Director of Public Prosecutions Noordin Haji ordered the prosecution of Mr Chatthe, Crossley Holdings and seven other suspects for conspiracy to fraudulently transfer the land between 2007 and 2008. Crossley, through a law suit, claimed to have acquired the land through an auction in 2007 and wanted the court to issue eviction order to the current occupants.

    For the silence, Kibos Sugar management giving donations to locals overseen by Kisumu Governor Anyang Nyong’o.

    The company, which was represented by Mr James Orengo, claimed the parcel of land registered as LR No 7545/3 was then occupied partly by trespassers and illegal settlers.

    Kenya Sugarcane Growers Association Secretary-General Richard Ogendo accused Crossley Holdings of attempting to defraud the State-owned miller of its prime land.

    Crossly Holdings owned by Kibos Sugar Company chairman Sukhwinder Singh Chatthe. Agriculture Permanent Secretary Hamadi Boga told a National Assembly committee how the land was fictitiously transferred to Crossley Limited by people out to defraud the miller.

    Taking advantage of their acquaintance with the DP Ruto who is the defiant face of impunity in government, this family like Mr.Jayesh, Rai family are taking advantage of Kenya’s weakest link -Corruption to have the guts.

    DP Ruto at the furthest end (Right) with the Chatthe family

    April 2021, another horrible incident happened in the company. Maurice Ongonyo, a bell tractor operator died on Thursday at the Kibos Sugar factory paper mill section after falling a moving conveyor belt, reports say. The incident that happened 1.30am would later turn out to be a case of an overworked, not motivate and underpaid employee incident.

    With relevant authorities charged with safeguarding environment having failed to discharge their mandate to stop ‘the rot’ going on in River Kibos, regional lobby groups have been urging residents of the Lakeside County and its environs to boycott sugar from Kibos Sugar factory  . Accordingly, boycotting sugar from the Kibos Sugar factory will go a long way in putting pressure on the factories’ management to stop polluting River Kibos which pours its water into Lake Victoria.

  • Omtatah Wants Mumias Sugar Revival Frozen

    Omtatah Wants Mumias Sugar Revival Frozen

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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