Devki Group withdraws its bid to lease Mumias Sugar

Devki Group withdraws its bid to lease Mumias Sugar
Sarrai Group had secured the lease for assets of Mumias Sugar Company

NAIROBI, Kenya, Jun 4 -Devki Group has withdrawn its bid to lease Mumias Sugar company. 

In a statement, the company says it has taken out its application given the ongoing public interest the matter has attracted and the call for a publicly run bidding exercise.

The withdrawal comes a day after the leadership of Western Kenya said it is in darkness over the planned takeover of the sugar miller  by an investor identified by Kenya Commercial Bank.

Led by Amani National Congress Leader Musalia Mudavadi, the politicians said they want details concerning the takeover made public because KCB Group, which placed the miller under receivership, is listed at the stock exchange.

Devki Group Chair Narendra Raval said their only interest is to revive the Miller and ensure it runs for the benefit of all stakeholders including farmers and the local community.

“…given the ongoing public interest which the matter has attracted and the call for a publicly run bidding exercise, we have found it worthwhile to take out our application. We will however express interest should the exercise be conducted in consultation with all the stakeholders, ” Raval said.

Mumias Sugar stopped milling over two years ago over poor internal governance, corruption as well as a huge debt portfolio running in billions.

MARGARET NJUGUNAH

Margaret Njugunah is Capital FM’s Business Editor responsible for radio and website business content. A Mass Communications Graduate of St. Paul’s University, Njugunah joined Capital FM in 2015 as a business reporter. Her specialist areas are financial news, economic reporting, technology, corporate and development news.