Farmers, leaders protest Jaswant's takeover of plants at Mumias Sugar

West Kenya Sugar Company Chairman Jaswant Rai when he appeared before the National Assembly Committee on Implementation at Harambee Sacco plaza, Nairobi on Tuesday 23/10/18 on the crisis facing sugar industry in Kenya. [Boniface Okendo,Standard] Milling operations at Mumias Sugar Company came to a standstill after local leaders and farmers stormed the factory in opposition to the takeover of the ethanol distillery and co-generation (co-gen) plants by Jaswant Singh Rai. This occurred after Kenya Commercial Bank (KCB), which placed the miller under receivership, allowed Jaswant to run the distillery and co-gen plants at the factory. Jaswant, the owner of West Kenya Sugar Company and Sarbi Singh Rai - who manages the miller - are at odds following the former's failed attempt to block the latter from taking over the milling giant. The two are brothers. "West Kenya Sugar is reviving the distillery and co-gen plants at Mumias Sugar (in receivership) in compliance with the directive issued by the President on January 20, 2025. On the instructions of the receiver manager, this is to request that you allow them unhindered access to the two plants mentioned above, to enable them to complete their assignment," read a letter signed by Patrick Mutuli, legal officer for the receiver manager appointed by KCB. Mumias Sugar is leased to Sarbi, who owns Uganda-based Sarrai Group. Last year, it took the intervention of President William Ruto for Jaswant to withdraw a number of court cases against Sarbi's takeover of the miller. Locals are now calling on Jaswant to relinquish control of the two plants. A co-gen plant produces electricity. The angry farmers, leaders, and locals have threatened to hold daily demonstrations until Rai vacates the premises to allow Sarbi to run the plants. However, Mayoni Member of County Assembly (MCA) Fredrick Watitwa alleged that Jaswant purchased the two plants through Victoria Bank and Vartox Resources. "We are aware that Jaswant Rai, through Victoria Bank and Vartox Resources, bought the two plants in deals that are suspicious, and we call upon the DCI to investigate the matter. Jaswant is leasing Mumias Sugar to himself," said Watitwa. Watitwa urged President Ruto to intervene and save the factory from collapsing, following the success of the miller's revival efforts. "Jaswant has been the fiercest and biggest opponent of the Mumias Sugar factory, specifically its revival, even though he was behind 17 cases against the revival and leasing of the miller," said Watitwa. He alleged: "How can a man who contributed to the downfall of Mumias Sugar be allowed to operate two plants at the miller when he already has his own factory ? We are aware of his plans to bribe leaders from the Western region to support his dubious scheme to kill Mumias." Khalaba MCA Boniface Osanga questioned how Jaswant would operate the plants when they depend on the milling plant for raw materials. "We are wondering how Jaswant will run the two plants, as they rely on sugarcane to supply them with molasses as raw material, yet the two brothers are enemies. This means one of them has to leave," said Osanga. He added that they would mobilise farmers to keep vigil at the factory and hold daily demonstrations until the running of the plants is handed over to Sarbi. "Sarbi can run the two plants; he has successfully revived the sugar factory, and as residents of this region, we can see a breath of life. If Jaswant refuses to vacate the premises, we will mobilise the entire region to demonstrate daily and stop the supply of cane to the factory," said Osanga. Farmers, led by Alice Kageha, are urging Ruto to intervene if he is sincere in his efforts to ensure the factory is fully revived and the entire sugar sector becomes profitable following the issuance of Sh150 million in bonuses to farmers. "Our President has demonstrated that he has good intentions in reviving our factory. ''However, we are asking ourselves how a man who has been opposing the revival of the factory can be allowed to operate the two plants located inside it?" posed Kageha. Kakamega Governor Fernandes Barasa has also weighed in on the matter, opposing the move to have Jaswant operate the ethanol and co-gen plants. "After the revival of Mumias Sugar, the next step was to operationalise the distillery and co-gen plants," said Barasa.

Farmers, leaders protest Jaswant's takeover of plants at Mumias Sugar

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