Employment restoration, farmer income revival, local economy boost, sugar production, tax revenue
Mumias Sugar Company Revival
Revival of Kenya's largest sugar factory in Kakamega by Sarrai Group under a 20-year lease after years of collapse.
AnnouncedSeptember 24, 2019
StartedDecember 1, 2021
Financials
Offering PriceKsh 5,800,000,000KES
Timeline
KCB Places Mumias Under Receivership
KCB Bank appointed PVR Rao as receiver manager after Mumias failed to repay KES 545 million
Controversial Lease Award to Sarrai Group
Sarrai won lease at KES 5.8B despite being lowest bidder; West Kenya Sugar bid KES 27.6B. Competition Authority called process fraudulent
Multiple Court Cases Filed
17+ court cases filed challenging the lease by unsuccessful bidders, farmers, and creditors
Sugar Production Resumes
Mumias Sugar 2021 Limited resumed operations, recalled 787 employees
President Announces KES 150M Farmer Bonuses
President Ruto disbursed KES 150 million in bonuses to Mumias cane farmers, first such payout in sugar sector history
Scandals & Controversies
Controversial Lease Award to Sarrai Group
December 1, 2021Sarrai won lease at KES 5.8B despite being lowest bidder; West Kenya Sugar bid KES 27.6B. Competition Authority called process fraudulent
Multiple Court Cases Filed
January 1, 202217+ court cases filed challenging the lease by unsuccessful bidders, farmers, and creditors
Contractors
Sarrai Group
Leaseholder (20 years)Awarded controversial lease to revive Mumias Sugar; challenged in court by West Kenya Sugar and others
PVR Rao & Associates
KCB Receiver ManagerConsultancy firm appointed by KCB as administrator
Politicians Involved
Fernandes Barasa
GovernorOpposed takeover of ethanol and co-gen plants by West Kenya Sugar
William Ruto
PresidentAnnounced KES 150 million farmer bonuses and championed sugar sector revival
Benefits
Description
Mumias Sugar Company, founded in 1971 and once Kenya's largest sugar producer accounting for 42% of national output, collapsed financially and ceased operations around 2017 after years of mismanagement and political interference. KCB Bank placed the company under receivership in September 2019 after being owed KES 545 million. In December 2021, Sarrai Group was awarded a 20-year lease at KES 5.8 billion, though the award was challenged by West Kenya Sugar Company (the highest bidder at KES 27.6 billion) and others in multiple lawsuits. Operations resumed in late 2023 with 787 former employees recalled. By January 2025, President Ruto announced KES 150 million in bonuses for sugarcane farmers, and the factory had planted cane on 90% of its 3,400-hectare nucleus land.
Overview
Revival of Kenya's biggest sugar factory supporting 50,000+ outgrower farmers and the entire Kakamega economy