Ruto Ends Billionaire Siblings Fight Over Business

A photo collage of Jaswant Rai appearing before Parliament in 2021 (left) and Sarbjit Singh Rai (right).
A photo collage of Jaswant Rai appearing before Parliament in 2021 (left) and Sarbjit Singh Rai (right).
Photo
National Assembly / Yoweri Museveni

For the last one and a half years, ailing Mumias Sugar Company has grabbed the airwaves after multiple companies challenged the awarding of a lease to Uganda-based Sarrai Group.

At the centre of the rivalry over the country's biggest sugar miller has been West Kenya owned by Jaswant Rai and the Ugandan miller owned by Sarbjit Singh Rai.

While the events of the past few days might not translate directly to the success of Mumias, they have put a pose to a sibling rivalry over the control of the country's sugar billions.

Unknown to some, the two are brothers who took over their father's vast business empire but separated on investment interests.

s
A photo of Mumias Sugar Company in Kakamega County.
Photo
Boni Khalwale

The younger Rai, Sarbjit, settled in Uganda where he owns one of the biggest sugar millers and other investments in mattresses, cement and timber among other products.

His interest in Mumias challenged his elder brother's business turf, which the latter challenged by filing cases in court to derail the case.

President William Ruto has been on a tirade blaming wealthy individuals for the mess that has rocked the sector in the past decade without providing evidence.

Last weekend, the elder Rai was abducted, and then Ruto emerged at a rally in Western Kenya threatening the billionaire industrialist in what critics read as a serious threat.

"Kesi watoe and hao wenyewe watoke. Mnanielewa ? Nimewambia mabo ni matatu. Wakitaka kuniletea Kisirani labda wahame Kenya, ama nitawaweka jela ama wasafiri waende mbiguni"

“Let them withdraw all those court cases even as they leave. I have given them three options. If they make me angry, there are three things, either leave Kenya, end up in jail or go to heaven,” he stated.

Days later, another tycoon associated with Rai was apprehended by DCI. What followed were case withdrawals that were put to rest issues that have derailed the revival of the sugar industry.

The Rai Sibling Rivalry 

In 2019 Mumias Sugar was put under receivership over unpaid loans and a receiver manager was appointed.

Sarrai Group run by Sarbjit Singh Rai was awarded the lease to operate the mill for 20 years after placing a bid of Ksh11.5 billion. Jaswant Rai offered Kshh3.5 billion.

Rai (Jaswant ) then moved to court to challenge the takeover of the brother claiming that the process was not transparent.

In April 2022, the High Court cancelled the lease awarded to the Ugandan company. The company was also directed to vacate the premises.  

 

A photo of sugar tycoon Jaswant Singh Rai.
A photo of sugar tycoon Jaswant Singh Rai.
Photo
Kabras Sugar