Jaswant Rai Bows to Ruto
Just days after he was kidnapped by unknown men, the billionaire industrialist Jaswant Rai withdrew all cases at the Appeals Court challenging the lease of Mumias Sugar Company (MSC).
The withdrawal of the cases that halted the revitalization of the once-giant sugar miller comes days after President William Ruto threatened to take action against those he accused of exploiting cane farmers in the Western Region.
West Kenya Sugar, which is owned by the sugar magnate, has filed three notices of withdrawal with the Court of Appeal to end their petitions challenging the award of Mumias to rival Sarrai Group in a nearly two-year-old court case.
The move by the oligarch who also owns Kabras Sugar comes just hours after a Dubai-based company, Vartox Resource Inc, withdrew its petition from the same court where it had also challenged the leasing of Mumias Sugar.
In 2019, Mumias Sugar Company was placed in receivership due to outstanding loans owed to several local banks and international institutions.
A receiver manager was appointed, who subsequently granted the miller’s lease to Uganda’s Sarrai Group, which relocated to the facility in December 2021.
West Kenya, through their attorneys, and Dubai-based Vartox Resources Inc. all opposed Sarrai’s victory, resulting in a year-long court battle that halted operations at the company.
His younger sibling, Sarbi Singh Rai, owns the Uganda-based Sarrai Group, which acquired Mumias Sugar Company.
Sarrai Group placed the third-highest proposal of Sh11.5 billion, followed by Rai’s West Kenya’s Sh3.5 billion and steel magnate Narendra Raval’s Sh8.4 billion.
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Tumaz and Tumaz, who are associated with the businessman Julius Mwale, submitted the maximum offer of Sh27.6 billion.
In their petitions, they argued that Mumias Sugar Company’s 20-year lease with the Sarrai Group was not conducted openly.
Uncertainty remains as to whether the withdrawal of the cases will now allow Ugandan millers to recommence operations halted by subsequent court orders.
President William Ruto has accused sugar barons of exploiting residents of Western Kenya through judicial cases, which have slowed reforms in the sector, according to recent events.
Wednesday, while speaking in Kakamega, the President stated, “I have instructed them to withdraw the court cases before we can resume planning for the sugar industry.”
He had previously warned sugar barons of dire consequences if they did not cease sabotaging public industries without providing evidence.
“They (sugar magnates) have three options: leave the country, go to prison, or go to heaven,” he warned.
According to Sugar Directorate data, Rai controls nearly fifty percent of Kenya’s sugar market share.
Jaswant Rai Bows to Ruto
