Kenya: Govt Will Not Sit and Watch Land Grabbers – Ruto Warns Mumias Investors
Nairobi — President William Ruto has warned private entities against grabbing Mumias Sugar Company land saying it belongs to the people of Kakamega.
The comments by the Head of State come against the backdrop of a High Court decision that held Uganda’s Sarrai Group of Uganda and its directors in contempt over continued operations at the miller amid a suit contesting a controversial lease.
Speaking on Sunday at Christ Church Cathedral, Kakamega County, the President said the land cannot be taken by individuals whose aim is to make money of it.
Ruto further said the 15,000-acre piece of land must be used to benefit the people of Mumias and promised to revive the sugar miller.
“I came here in December and said I’ll sort out Mumias Sugar woes. It was not a joke; it is in our manifesto. We will deal with the Mumias Sugar issue once and for all,” the President said.
The Head of State also stated that government spent up to Sh5 billion to revive the sugar miller in the past, but nothing came out of it.
“The government spent up to Sh5 billion in the past to revive this factory but nothing happened This time around, we must get it right.
“I have instructed the ministry concerned and I’ve taken a proposal to the Cabinet to sort out the mess at Mumias Sugar,” Ruto said.
The President said the Cabinet will discuss the revival of Mumias Sugar with a view to secure land and make it profitable for both the county and Mumias sugarcane farmers.
In December 2022, the President threatened to evict Sarrai Group from Mumias saying they had not done anything to turn around the sugar miller.
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“The government will clear all outstanding debts of the miller and bring in a new investor under an agreement that he will be remitting Sh100 million monthly to the County Government of Kakamega to improve on standards of education, health and improve the road network,” he said.
President Ruto said many investors were willing to work with his administration to take over the running of Mumias and improve the sugar sector in the country.
He regretted that while hundreds of the local youth were starving for job opportunities, and yet Mumias Sugar was in a position to address the same.
The Uganda-based Sarrai Group had been awarded a 20-year-lease to operate the troubled miller but it was later cancelled.
In his ruling on April 14, 2022, Justice Mabeya said if the lowest lease amount of Sh5.8 billion by Sarrai Group was accepted, the sugar miller would never bounce back to profit.
He said the amount was not even sufficient to settle the debt owed, pay cane farmers and resume the company’s operations.
“The receiver manager cum administrator was seriously conflicted in awarding the lease to Sarrai Group.
“The lease should have been awarded to a company with financial muscle to bring the company back to life.
“I do not understand why he disregarded the highest bidders,” Mabeya said in his ruling.
Tumaz and Tumaz, a company associated with US-based business tycoon Julius Mwale, emerged as the top bidder with Sh27.6 billion for a 20-year lease in the Mumias Sugar bidding process which had attracted a total of eight bidders.
