600 direct jobs, 2,500 indirect jobs, Webuye economic revival, paper production, tax revenue
Pan African Paper Mills Revival (Webuye)
Revival of collapsed Pan African Paper Mills in Webuye by Rai Group with KES 6 billion investment after 12-year shutdown.
AnnouncedMay 1, 2016
StartedMay 1, 2016
Financials
Offering PriceKsh 6,000,000,000KES
Timeline
Factory Established
Pan African Paper Mills established, becoming East Africa's premier paper factory
Factory Collapse
Factory closed after years of financial turbulence; over 3,000 jobs lost, Webuye economy devastated
Rai Group Takeover
Rai Group purchased assets for KES 900M, committed KES 6B over three years
Operations Resume
First paper machine restarted, producing test liner and kraft liner using recycled waste paper
Second Machine Commissioned
KES 500 million second paper machine commissioned, doubling capacity to 40,000 tonnes per year
Former Workers Paid Terminal Dues
Government released KES 229 million to 1,349 former employees as terminal dues
Contractors
Rai Group (Narendra Raval)
Strategic Investor and OperatorBillionaire industrialist who purchased Pan Paper assets for KES 900M and committed KES 6B investment
Politicians Involved
Uhuru Kenyatta
PresidentAnnounced Rai Group as strategic investor and KES 6 billion revival plan
Moses Wetang'ula
Speaker National AssemblyPraised investor and announced plans for 45MW Nabuyole power station
Benefits
Description
Pan African Paper Mills, commonly known as Pan Paper, was East and Central Africa's premier paper factory, established in 1972 and opened by President Daniel Arap Moi in 1979. At its peak it employed 3,000 workers directly and 5,000 indirectly. The factory collapsed in 2009 after years of financial turbulence, devastating Webuye town's economy. In 2016, President Uhuru Kenyatta announced the Rai Group as strategic investor, purchasing the company's assets for KES 900 million and committing KES 6 billion over three years. Operations resumed in mid-2018 using recycled waste paper instead of forest timber. By 2021, a second KES 500 million paper machine was commissioned, doubling production to 40,000 tonnes per year. The factory now employs 600 directly and 2,500 indirectly. In 2025, the government released KES 229 million to pay terminal dues for 1,349 former workers.
Overview
Revival of Western Kenya's largest industrial plant that once anchored the economy of an entire town