Devki Group has announced its withdrawal from the race to invest in troubled Mumias Sugar Company, barely two weeks after it expressed interest in the company.
According to Devki Group Chairman Dr Narendra Raval, the move was necessitated by the increased political interest in the transaction. The company planned to put in KSh5 billion into the collapsed sugar miller in an effort to revive it. However, concerns about the bidding process have led Devki Group to drop its bid.
The company has said it will submit its bid for Mumias should the process engage all stakeholders. Devki’s Chairman restated his company’s wishes to revive Mumias Sugar Company in the interest of investors, farmers, and the local community.
Mumias Sugar has been under receivership since September 2019 after it failed to repay KSh545 million debt owed to KCB Group. KCB appointed Ponangipalli Venkata Ramana Rao as the sugar miller’s receiver-manager to protect its assets and recover its loans.
Miriam Wangui of the Kenyan Wallstreet Contributed to this Article
