Steel billionaire Narendra Raval has withdrawn his lease offer from the ailing Mumias Sugar Company, a blow to the revival of the miller that hasn’t been in production for more than two years.
Raval, who planned to inject 5 billion shillings to modernize the once-giant miller after winning the tender, cited political interests after western Kenyan politicians questioned the process.
The Devki Group president said his decision was made to protect his business name and reputation from being clouded by politics.
“I have withdrawn my interest in investing in Mumias through a lease plan due to political interests that have arisen. “I have officially informed KCB of my withdrawal,” said Mr. Raval. Business Daily In an interview.
The miller was placed on hold by KCB Group #ticker in September 2019: KCB to protect its assets and maintain its operations.
Politicians in western Kenya have raised issues about the company’s leasing process, questioning the procedure that was used.
Eight firms participated in the lease tender, and Raval was the pioneer thanks to its financial strength and track record of operating industries, people with knowledge of the lease details said.
His withdrawal now sends KCB back to the drawing board.
“They told me that I am the winner, but it is a pity that I will not continue with the plans to invest in Mumias because of the new political turn that has questioned the selection process,” he said. Business Daily.
“Given the ongoing public interest the matter has attracted and the call for a public tender exercise, we have found it worthwhile to withdraw our application. However, we will express interest if the exercise is carried out in consultation with all stakeholders, “the Devki founder said in a statement Friday morning.