Mumias Sugar Company: Photo: NTV Kenya.
By Daisy Okiring
Mumias sugarcane farmers and local leaders are calling for an investigation into the operations of Mumias Sugar Company under receiver manager PVR Rao, following revelations of a KSh 3.5 billion tax debt.
The farmers have also urged Kenya Commercial Bank (KCB), which placed Mumias Sugar under receivership in 2019 to recover a KSh 545 million debt, to release a detailed financial report on the miller’s operations since then.
During a press conference in Mumias, former MP Wycliffe Osundwa questioned how the company had accumulated such a significant tax debt under the receiver manager’s leadership.
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“When taking over, there were 700 bags of sugar worth KSh 4.2 million, 685,000 litres of ethanol valued at KSh 274 million, and standing cane worth KSh 170 million. Where did all this money go?” Osundwa asked.
According to the farmers, additional revenue was generated from ethanol sales, with 2.2 million litres produced between February 2020 and December 2021, amounting to KSh 880 million. They now demand an account of these funds.
Local leader Ralph Wangatia further alleged that the current investor lacks the capacity to run alternative revenue streams such as ethanol, co-generation, and water plants. He warned that instead of reducing debt, the receiver manager’s actions seem to be driving Mumias Sugar deeper into financial trouble.
“The feeling is that the revenue generated under the receiver manager is only increasing debt instead of reducing it. Mumias Sugar is being pushed to its knees,” Wangatia said.
He also questioned how Rao managed to restart operations just two months after taking over, despite cane shortages at the time.
“The one-million-dollar question is, where did he get the cane?” Wangatia asked.
Full financial report
The stakeholders are now demanding a full financial report and calling on the Ethics and Anti-Corruption Commission (EACC) to launch investigations into Rao’s management of the company.
Concerns over possible asset stripping have also emerged, with sugarcane farmer Raphael Welimo alleging vandalism of equipment at the ethanol and co-gen plants. He cited an incident on February 25, 2025, where equipment was reportedly stolen, but no action was taken despite the suspect being arrested.
“We are aware that the ethanol plant has been vandalized, and even after the culprit was arrested, no action was taken despite management being aware,” Welimo said.
Further concerns were raised over an incomplete valuation report conducted by Centenary Valuers on February 3, 2025. Farmers claim that the valuation team was denied access to a full list of plant machinery, raising suspicions about possible irregularities.
The farmers and leaders now insist that the government, KCB, and anti-corruption agencies step in to ensure accountability and transparency in Mumias Sugar’s management under receivership.
