BIDDING

Investor tops Mumias Sugar bids at Sh27 billion - receiver manager

Eight bidders had submitted their bids in a public effort to lease the troubled sugar factory.

In Summary

• Tumaz and Tumaz enterprises, the company associated with Mwale City investor Julius Mwale topped the bids with Sh27.6 billion over a 20-year lease period.

• Last month, the High Court okayed the opening of tenders for leasing the mill after about three-year closure.

Mumias Sugar Company Limited
Mumias Sugar Company Limited
Image: FILE

The much-awaited public bidding for Mumias Sugar Company, which is under receivership managed by PV R Rao was held on October 6 in Nairobi.

According to the receiver-manager Ponangipali Rao, a total of eight bidders submitted their bids in a public effort to lease the troubled sugar factory, with the top three bidders offering more than Sh10 billion for the factory's leasing.

Tumaz and Tumaz enterprises, the company associated with Mwale City investor Julius Mwale topped the bids with Sh27.6 billion over a 20-year lease period.

The second-highest bid was Kruman Finances with Sh19.7 billion for a 25-year lease. Kruman Finances is associated with French and Turkish investors.

Transmara Group (Sarai) closed the top 3 bids with Sh11.5 billion over a 20-year lease period.

Other bidders were Pandhal Industries with Sh9.7 billion over 20 years lease, Kibos Sugar bid came in at Sh8.8 billion, Devki at Sh8.4 billion over 20-years lease, and West Kenya Sugar was Sh3.5 billion.

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

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

Last month, the High Court okayed the opening of tenders for leasing the mill after about a three-year closure.

The process had been dogged by controversies that delayed the drive to revive the company that went down under heavy debts and inadequate supply of raw materials in 2018.