Mumias receiver restarts miller’s leasing
Mumias Sugar Company receiver manager Ponangipalli Venkata Rao has restarted the process to lease out the assets of the firm.
This is after a fresh directive by Senate’s Agriculture Committee last month which sought to instill transparency in the lease out process following uproar by stakeholders including sugarcane farmers.
In a notice published in local dailies on Monday, the KCB appointed receiver has invited fresh bids from investors, latest by 10am on August 31.
The rundown state miller’s assets are expected to be leased out on an ‘as-is-where-is’ basis with interested parties being allowed to inspect the conditions of the assets.
The leasing process is expected to inject a new lease of life through the modernization of key infrastructure and efficient management.
The winner of the bid is expected to agree with the receiver manager on the leasing period and monthly lease rent.
An initial attempt by Tact Consultancy’s Ponangipalli Rao to lease out the miller through a privately initiated process crumbled after stakeholder uproar.
Billionaire businessman and Devki Group Chairman Narendra Raval for instance withdrew his privately placed bid to lease out Mumias assets in early June alluding the public fallout.
The leasing out of Mumias Sugar assets has the backing of government from a recent task force report.
KCB Group placed Mumias under receivership in September of 2019 on mounting debt.