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Farmers to get Sh2 billion in Mumias Sugar’s top bid

The Receiver manager PV R Rao said the bids will undergo technical and financial evaluation before announcing the winning bid.

Story Highlights
  • Mwale confirmed that he already secured the total bid money and will have the factory up and running within six months if his company emerged victorious in the ongoing bidding process.
  • In Mwale's company bid details seen by sources familiar with the bidding process, Sh2 billion is earmarked for farmers for cane development and Sh5 billion will go towards initial debt repayment, restoration and upgrade of the cane factory.

Farmers and residents in Kakamega County were filled with excitement after Mumias Sugar Company’s Receiver Manager PV R Rao announced the list of bidders who had submitted bids to lease the factory currently under receivership.

A total of eight bidders submitted the bids according to the receiver manager, with the top bid of Sh27.6 billion for a 20-year lease from Tumaz and Tumaz Enterprises Limited, a company associated with Mwale City investor, Julius Mwale.

Mwale confirmed that he already secured the total bid money and will have the factory up and running within six months if his company emerged victorious in the ongoing bidding process.

In Mwale’s company bid details seen by sources familiar with the bidding process, Sh2 billion is earmarked for farmers for cane development and Sh5 billion will go towards initial debt repayment, restoration and upgrade of the cane factory.

The bid also shows Sh2 billion going towards the upgrade of the ethanol production plant.

The ethanol plant upgrade is to enable it to produce pharmaceutical products and vaccines in addition to ethanol production.

Another Sh2 billion is allocated for a modern hospital at the factory which will serve the community.

The power generation systems and water bottling plant will get Sh1 billion for upgrades.

The bid documents further reveal a total of Sh8 billion will be invested in new housing, Sugar themed tourist resort, an airport and agricultural research university.

The Receiver manager PV R Rao said the bids will undergo technical and financial evaluation before announcing the winning bid.

Other bidders who submitted their bids are Kruman Finances associated with French and Turkish investors, with a bid of Sh19.6 billion for a 25-year lease and Transmara Group (Sarai) with a bid of Sh11.5 billion over a 20 year lease period.

Others are 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 Ltd also participated but did not disclose the value of its bid.

Via
Star Reporter
Source
The Star

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