HomeBusinessDevki chairman offers Sh5 billion to revive Mumias Sugar Company

Devki chairman offers Sh5 billion to revive Mumias Sugar Company

Devki Group Chairman, tycoon Narendra Raval is stalking a multi-billion claim in saving the once-thriving Mumias Sugar Company.

The billionaire plans to inject Sh5 billion into the sugar factory that stopped its operations in September 2019 because of unpaid loans.

In the leasing plan, Sh4 billion will be used to restore the run down processing plant, while Sh1 billion will be used as an inducement to get farmers back to sugarcane farming.

Raval is among the eight people who have been shortlisted for the taking over of Mumias Sugar through leasing.

Speaking to a local publication, the steel billionaire indicated that he was devoted to creating employment in the area that has suffered due to the collapse of their main source of livelihood.

“My major objective will be to perk up the factory and give back the livelihood to more than a million locals who relied on the company,” he stated.

The sugar company was put under receivership by Kenya Commercial Bank (KCB)in September 2019 to protect its assets and maintain operations.

The firm that secures the leasing contract will operate the factory and pay KCB a total of Sh545 million over a period of 15 years.

Mumias Sugar Company has been plagued by a number of challenges ranging from Mismanagement, sugarcane shortages and constraints in cash flow.

The successful businessman made his first billion in the manufacture of steel before joining the cement industry.

This will be his first major investment in the sector of Agriculture.

Devki Group, located at Athi River, Machakos County, is the largest manufacturer of steel products in East and Central Africa. It has employed over 4,000 employees.

In 2015, Raval was listed as among the top wealthiest people in Africa, with an estimated value of Sh65 billion.

The humble tycoon is well-known for his philanthropy and supports a string of orphanages in the country.

Related news