Ray of hope as Mumias receiver manager invites leasing bids

Tuesday, August 3rd, 2021 00:00 | By
Sugarcane farming. Photo/Courtesy

Giant sugar miller Mumias Sugar Company will soon be leased almost two years after it was placed under receivership.

Mumias, the largest agro-industry based in Western Kenya, has nucleus estate, sugar factory, ethanol plant, co-gen plant, mineral water plant, residential estate, guest house, golf house and other movable properties has been put up for leasing.

“With a view to inject a new lease of life and to facilitate turnaround of the mill to profitability through modernisation and efficient management, the receiver wishes to invite investors, who are interested in the leasing of all or any of the above facilities for a mutually acceptable period at an agreed monthly lease rent,” the advert said.

According to the receiver manager, interested parties may send bid in the prescribed form and that bid documents can be obtained against a banker’s cheque for Sh25,000 favouring ‘Mumias Sugar Company (in Receivership).

The facilities under Mumias Sugar Company were held as security by different lenders and the leasing of each respective facility will be finalised only after obtaining the required consent.

“There are several other applicable regulatory approvals and consents required, before the lease is operationalised and that the interested parties shall demonstrate how they intend to apply good corporate governance and Social responsibility to improve the living standards of the people of the region by providing employment opportunities soon,” reads the advert.

The receiver also said that the assets leased on ‘as-is-where-is’ basis and the interested parties shall inspect and satisfy themselves as to the condition of the assets.

In addition, parties may inspect the assets, with prior approval of the receiver and may seek any further clarifications before submitting the final bid.

KCB Group placed the giant miller under receivership in September 2019 after it failed to clear loans amounting to Sh545 million owed to the lender.

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