The Rai family has turned Mumias Sugar into a financial battleground as brothers have extended their family differences in seeking to gain control of the troubled former giant miller.
Their father, Talorchan Singh Rai, was a tycoon and a patriarch who had deep interests in farming and timber. Together with his wife Sarjij Kaur Rai had five children.
The wife also had her own interests, she was into agriculture specifically focusing on the flower sector which earned her fame and respect in the well endowed family.
Before her husband died in 2010, Sarjij Kaur had sued him together with his two sons now at the center of the never-ending battles sorrounding Mumias Sugar, domiciled in Kakamega County.
The eldest brother is wrestling his younger sibling over the control of Mumias Sugar which is under receivership, with the State pushing for its revival.
The eldest son, Jaswat Singh Rai, is based in Kenya and is the Chairman of the Rai Group. Other than just being the chairman of his late father's estate, he also holds the majority shares in Rai products and other investments within their family line.
In his bid to gain control of the milling company, it is reported that he submitted a bid worth Ksh36 billion lease for a period of 20 years.
His youngest brother, Sarbi Singh Rai, on the other hand, is well established in the neighbouring country of Uganda. He runs Sarrai Group in that country.
Sarrai Group owns a number of companies whose interests span from plywood, sugar, wheat, soap, edible oil, and mattresses companies.
The youngest brother submitted a bid of Ksh6 billion that won the control of Mumias sugar for a 20-year lease.
Jaswant argues that his brother has no track record of sugar production in Kenya whatsoever and that it is a company whose financial viability and technical ability has no record in Kenya. On the other hand, West Kenya is a well-established Kenyan company with a track record of sugar production in the country.
His sentiments were supported by Senior Counsel Paul Muite who noted that the receiver Manager Ponangipalli Rao does not have the professional experience to revive the ailing sugar company.
“The figures and analysis produced by the 1st defendant in the said replying affidavit are imaginary and based on conjecture and hypothesis,” he said in an affidavit.
The milling firm has one of the largest nucleus estates at 4,000 hectares with the milling plant having a capacity of 8,000 per day, making it the largest sugar processor in Kenya.
The family has dominated the sugar sector awhile and owns West Kenya, Sukari industries, and Olepito.
Data released in 2020 by the Sugar Directorate showed that the three companies controlled 45 per cent of the total sales in the country. That figure indicated a slight growth from 41 per cent the companies held in 2019.
