Mumias Sugar Standoff: Farmers and Leaders Protest Takeover of Key Plants
- 05-Feb-2025 12:20 PM
- Journalist: Italo Calvino
Operations at the Mumias Sugar Company have been brought to a standstill following a dramatic protest by farmers and local leaders. The demonstrators are contesting the takeover of the company’s crucial ethanol distillery and co-generation (co-gen) plants by businessman Jaswant Singh Rai, owner of West Kenya Sugar Company. The move, orchestrated by the Kenya Commercial Bank (KCB), which placed the struggling miller under receivership, has ignited a firestorm of controversy.
The controversy erupted after KCB, acting through its receiver manager, authorized West Kenya Sugar to revive the ethanol and co-gen facilities. This directive, reportedly aligned with President William Ruto’s January 20th directive, was communicated in a letter signed by KCB’s legal officer, Patrick Mutuli, granting West Kenya Sugar unimpeded access to the plants. However, this decision has been met with fierce resistance from local farmers and leaders, who allege foul play and are demanding the reversal of the takeover.
The protesters, who have vowed to hold daily demonstrations, are adamant that Jaswant Singh Rai, a figure they perceive as an adversary of Mumias Sugar’s revival, should not be entrusted with control of these vital assets. They are calling for Sarbi Singh Rai, the current manager of Mumias Sugar under a lease agreement, to assume control of the plants. The co-gen plant, a critical component of the factory’s operations, generates electricity, making its control a significant factor in the company's overall viability.
Adding fuel to the fire, Mayoni Member of County Assembly (MCA) Fredrick Watitwa has made serious allegations against Jaswant Singh Rai. Watitwa claims that Rai acquired the plants through dubious deals involving Victoria Bank and Vartox Resources, and he has called upon the Directorate of Criminal Investigations (DCI) to launch a thorough investigation into the matter. He further argues that Rai's history of legal challenges against Mumias Sugar's leasing and revival, including 17 court cases, disqualifies him from managing key operations within the factory.
Echoing Watitwa’s concerns, other leaders and farmers have expressed bewilderment at the decision to hand over control to someone they view as having actively worked against the company’s interests. They question the logic behind entrusting the revival of Mumias Sugar to an individual perceived as an obstacle to its recovery. Local leader Osanga warned of escalating protests, threatening to mobilize the entire region to halt sugarcane supply to the factory if Rai refuses to relinquish control.
Farmers, led by Alice Kageha, have appealed directly to President Ruto, highlighting the apparent contradiction between his stated commitment to reviving the sugar sector, demonstrated by the recent disbursement of Sh150 million in bonuses to farmers, and the current situation.