Jaswant Rai: Embattled Sugar Billionaire Withdraws Case Against Mumias Amid Ruto's Threats

• West Kenya Sugar Company under Jaswant Rai had sought to take over its struggling rival Mumias Sugar on lease terms
• However, KCB which had entrusted itself as the administrator of the mill charged Sarrai Group from Uganda with running the miller for 25 years
• Jaswant, who was against the lease being granted to Sarrai, had enlisted himself among the respondents in the case against Mumias in the appellate court

Nairobi - Rai Group chairman Jaswant Singh has applied to remove his case against Mumias Sugar Company at the appellate court.

Jaswant addressed a notice to the court seeking to give up his bid to block the Uganda-based Sarrai Group from taking over the Kakamega-based sugar mill on lease terms.

A 25-year lease had been granted to the Sarrai which is under Sarbjit Singh Rai, a brother of Jaswant.

Is Mumias Sugar Company operating?

An insolvent Mumias Sugar was taken under receivership in 2018, with the Kenya Commercial Bank (KCB), which the miller was indebted to, charging the Uganda-based firm with running the company in a bid to recover the millions owed to it (KCB).

The bank however lost its rights to preside over the miller after the High Court intervened, asking to include other listed creditors in the miller's operations.

KCB would then move to the Court of Appeal to strive to retain the rights to manage Mumias Sugar as a sole administrator.

It is in the appellate court that West Kenya under Jaswant enjoined as respondent; he had earlier sought to take over Mumias still on the lease terms after bidding upward of KSh 3 billion.

The appeal filed by KCB has been pending to date.

Besides the maintenance works, the company has not been producing sugar despite its trademark packaging with contents being stocked in retail outlets.

"Despite the cessation of operations by Mumias Sugar Company, its sugar has continued to inexplicably appear on retailers' shelves, a mystery that is yet to be uncovered," observed Kakamega governor Fernandes Barasa.

William Ruto's take on sugar barons

Jaswant's withdrawal of the case came days after President William Ruto resolved to take head on the supposed cartels stifling the sugar industry for their own gain.

Ruto, who camped in Western Kenya for a working tour a couple of days back observed that Mumias Sugar had been taken to its knees by the cartels whom he swore to go tough on.

According to him, they ought to change their ways or face deportation, get sentenced, or be seen off to heaven.

Mumias East MP Peter Salasya, in whose constituency the one-time leading sugar miller is domiciled, has been pushing for the KCB to preside over operations there.

During Ruto's meeting with the Western region's leaders at the Kakamega State Lodge on Wednesday, August 30, the lawmaker argued that an enabling environment for the bank to revitalise the miller would be the only antidote.

He was opposed to pleas made to the national government to inject billions into the company, saying it would not be a long-term solution.

"I pity you Mr President because everybody is asking for money from you. We already have the solution. We already have KCB which cannot condone corruption. The local politicians want investors who will hand them kickbacks," said Salasya.