Uganda’s Sarrai Group wins bid for Mumias Sugar assets

Ugandan business conglomerate Sarrai Group has won the bid to lease the assets of Mumias Sugar Company.

The 20-year lease is expected to cover all assets of the struggling miller but for its ethanol and cogen plants.

While the group has no sugar interests in the country at present, the conglomerate runs three sugar factories in Uganda including Kinyara Sugar, Hoima Sugar and Kiryandongo Sugar.

Sarrai’s sugar production footprint covers 20,000 hectares under cane production, an installed milling capacity of 19,000 tonnes crushed per day (TCD) producing an estimated 170,000 tonnes of sugar every year.

Sarrai Group has trounced seven other bidders to the leasing deal including Tumaz and Tumaz Enterprises, the Rai Group, Kruman Finances, Pandhal Industries, Kibos Sugar, the Devki Group and Sucrie Des Mascarelgnes.

Mumias Sugar Company has remained under receivership since September of 2019 and under the custody of KCB-appointed receiver manager Ponangapalli Rao after falling into debt distress.

The receiver manager is betting on the deal to offer Mumias a new lease of life.

“The revival of Mumias Sugar Company Limited will enhance the standard of living of the local community and catalyse growth in the area. We hope to see the original glory of Mumias back,” said Rao.

Sarrai Group says its immediate focus will be the rehabilitation of the miller’s rundown machinery to restore the firm’s operation status along with engaging the miller’s stakeholders including workers.

"Mumias Sugar was the most respected sugar company not only in Kenya but the entire region and it is our firm commitment to all the stakeholders that we shall use our experience and resources to make sure that we revive the company and take it back to the heights it once enjoyed," said Sarrai Group Chairman Sarbi Singh Rai.