Home Business Kes 27 billion tops Investor’s bid for Mumias sugar bids

Kes 27 billion tops Investor’s bid for Mumias sugar bids

by Wanjiku Mbugua

The much-awaited public bidding for Mumias Sugar company, which is under receivership managed by PV R Rao was held on October 6th, 2021 at 3 p.m. at Movenpick Hotel in Westlands in Nairobi.

A total of 8 bidders submitted their bids in a public effort to lease the troubled sugar factory, with the top three bidders offering more than Kshs. 10 billion for the factory’s leasing.

Tumaz and Tumaz enterprises, the company associated with Mwale City investor Julius Mwale topped the bids with Kshs. 27.6 billion over a 20 year lease period.

The second-highest bid was Kruman Finances with Kshs. 19.7 billion for a 25-year lease. Kruman Finances is associated with French and Turkish investors. Transmara Group (Sarai) closed the top 3 bids with Kshs. 11.5 billion over a 20 year lease period.

Other bidders were Pandhal Industries with Kshs. 9.7 billion over 20 years lease. Kibos Sugar bid came in at Kshs. 8.8 billion. Devki at Kshs. 8.4 billion over 20 years lease. And West Kenya Sugar was Kshs. 3.5 billion.

A Mauritius based company Sucrie Des Mascarelgnes Ltd also participated but did not disclose the value of its bid.

The receiver-manager PV R Rao had earlier in the year testified in the Senate and promised to conduct a transparent bidding process for the troubled miller’s intended to lease.

The bid announcement exercise marked the first step in the bidding process and the receiver-manager is yet to inform of the next steps after announcing the bids.

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