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Mumias Sugar Company Limited

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Mumias Sugar Company Limited is a sugar manufacturing company in Kenya , the largest economy in the East African Community . It is the largest sugar manufacturer in Kenya, producing about 250,000 metric tonnes (42%) of the estimated 600,000 metric tonnes annual national output.

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53-505: The company maintains its headquarters in the town of Mumias , in Kakamega County , Western Province of Kenya , near the sugar plantations and factories of the company. Mumias lies approximately 395 kilometres (245 mi), by road, northwest of Nairobi. The company maintains an operations center in Nairobi , the capital of Kenya and the largest city in that country. Mumias Sugar Company

106-506: A mosque called "Sheikh Khalifa Mosque", which was built in 1991 with Kuwaiti assistance. Other mosques have since been set up such as the one in Ekero area. Constitution of Kenya The Constitution of Kenya is the supreme law of the Republic of Kenya . There have been three significant versions of the constitution, with the most recent redraft being enabled in 2010. The constitution

159-474: A Commission of Inquiry. On 14 April 2022 the lease award was legally canceled by Justice Mabeya for failure to consider other creditors, for failure to consult the Competition Authority of Kenya, for failure to explain how Mumias would repay its creditors, and for failure to conduct a feasibility study. The Judge further demanded that the administrator step aside and give unrestricted access of Mumias to

212-531: A list of persons to be appointed as judges by the president (this article will be enforced after the transitional period). The commission will consist of the following: Devolution to the county governments will only be autonomous in implementation of distinct functions as listed in the Fourth Schedule (Part 2). This is in contrast with the Federal System in which Sovereignty is Constitutionally divided between

265-626: A modern bus park and a modern market. The town hosts the Office of the Member of Parliament for Mumias West, the office of the Deputy County Commissioner. The town has a stadium, Bomani Grounds, used for official meetings, political events, games and other events. The collapsed Mumias Sugar Company was a major employer in the region. The company owned the Mumias Sugar FC , which was one of

318-436: A number of proposed amendments to Kenya's constitution. Promoted by Kenyatta and Odinga as a way to resolve factional tensions in the nation—improving inclusion and ending Kenya's winner-take-all elections (often followed by deadly violence)—the amendments sought to: Critics alleged the effort was unnecessary, and was a selfish attempt to reward political dynasties, and weaken Deputy President William Ruto (Odinga's rival for

371-549: A revised draft was presented to the Parliamentary Committee on 8 January 2010. The Parliamentary Select Committee (PSC) revised the draft and returned the draft to the Committee of Experts who published a Proposed Constitution on 23 February 2010 that was presented to Parliament for final amendments if necessary. After failing to incorporate over 150 amendments to the proposed constitution, parliament unanimously approved

424-557: A role to play in the County level by performing all the other functions that are not assigned to the County Government as listed on the Fourth Schedule (Part 1). The new constitution makes important reforms to the previous framework on citizenship, in particular by ending gender discrimination in relation to the right of a woman to pass citizenship to her children or spouse; by ending the prohibition on dual citizenship; and by restricting

477-482: A second lease suspension until 14 March 2022, when the case would be heard and determined. The farmers had sued Sarrai Group, P V Rao, the attorney general, competition authority,  Kakamega County government among others. In its reply to the suit, the Competition Authority of Kenya told the court that the lease award was fraudulent, because the KCB receiver manager and Sarrai Group failed to get its approval before taking over

530-477: Is capital of the Luhya kingdom of Wanga . King Nabongo Mumia , who came to power in 1880, was the last sovereign king of Wanga . He was succeeded by his son Shitawa who ruled after his death in 1949 till the late seventies. He then was succeeded by Mumia II who is currently in power. His role remains largely non executive, but the royal family draws taxes from the trade that goes on in the county council of Mumias, which

583-596: Is dealt with under Article 191 where National legislation will in some cases override County legislation. The relationship between the National Government and the Counties can be seen as that of a Principal and a limited autonomy Agent as opposed to an Agent and Agent relation in the Federal System. More checks and balances have been introduced as requirements for accountability of both levels of government. The Parliament( Senate and National Assembly) has much discretion on

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636-476: Is illegal. The education curriculum includes religious education syllabus for both Christianity and Islam. Following the contentious 2017 presidential election (initially ruled illegal by the Supreme Court, which forced President-elect Kenyatta into a re-run), the two leading contenders—rivals Uhuru Kenyatta (who won election) and Raila Odinga —proposed a "Building Bridges Initiative" (BBI), which consisted of

689-457: Is primarily engaged in the manufacture and sale of sugar. The company grows some sugar cane; its own estates provide up to 7% of its annual output. Its primary source of sugarcane is over 50,000 registered "out growers" with over 400 square kilometres (99,000 acres) under cultivation . It has also piloted the production of a hybrid high-yielding palm oil variety in areas previously thought too cool for commercial cultivation, in collaboration with

742-704: Is respected and properly implemented." Canadian Foreign Affairs Minister Lawrence Cannon stated: "On behalf of the Government of Canada , I wish to congratulate Kenya on the adoption of its new constitution. This is a significant achievement and an important moment in Kenya's history. We welcome the leadership shown by President Mwai Kibaki and Prime Minister Raila Amolo Odinga within the Grand Coalition Government in bringing Kenyans together to tackle their future and make progress through dialogue, and in implementing

795-596: Is the second largest town in Kakamega County. Mumias was the centre of the Mumias District. The town is linked by road to Kakamega (in east), Busia (west), Bungoma (north), Butere , Luanda , Maseno and Kisumu (south). Two major rivers, River Nzoia and River Lusumu pass close to the town. The town has four major hospitals namely, Mumias Level 4 Hospital (the largest) St.Marys' Mission hospital, Jamia Hospital and The Mumias Modern Dispensary. The town has

848-536: Is to date still regarded as the seat of power. This includes taxes from the Mumias Sugar Company. The family still owns the land in the county although bits and pieces have been sold off to private developers. The entire Royal Family is still very closely linked to the choices of political leaders in the region as well as to their royal ties of the Abashitsetse clan. Each family has its own meetings (families keep

901-652: The Orange Democratic Movement disagreed on many points. the greatest discrepancy in opinion was over the nature of the executive branch of the government. The economic interest represented by the Kenya Private Sector Alliance (KEPSA), openly opposed the new style of government. Eventually the contentious issue of the position of Prime Minister was removed. The remaining contentious issues primarily concern abortion , Kadhi courts and land reform. Mainstream Christian leaders in Kenya object to

954-566: The UN Food and Agriculture Organization (FAO). In addition to sugar, the company co-generates 34 Megawatts of electricity. Some of the electric power is used internally and surplus is sold into the nation electricity grid. The company also manufactures 24 million liters of ethanol annually and 20 million liters of distilled water every year. The company was founded in 1971, with the following shareholding profile: (a) Government of Kenya (71% shareholding) (b) Commonwealth Development Corporation of

1007-550: The Federal government and the States. The Kenyan Devolution system still maintains a Unitary Political Concept as a result of distribution of functions between the two levels of government under the Fourth schedule and also as result of Article 192 which gives the president the power to suspend a county government under certain conditions. A conflict of laws between the two levels of government

1060-506: The Harmonized draft constitution of Kenya written by the Committee of Experts initially released to the public on 17 November 2009 so that the public could debate the document and then parliament could decide whether to subject it to a referendum in June 2010. The public was given 30 days to scrutinize the draft and forward proposals and amendments to their respective members of parliament, after which

1113-608: The Kenyan High Court. In May, 2021, the Kenyan High Court blocked the BBI plan, declaring it irregular, illegal and unconstitutional. The court ruled that the Kenyatta was not eligible to undertake such an amendment process because he was not simply an ordinary citizen—the only people authorized by the constitution to undertake such an effort. The court further chastised President Kenyatta, saying that his BBI constitutional committee

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1166-531: The United Kingdom (17% shareholding) (c) Kenya Commercial Finance Company (5% shareholding) (d) Booker McConnel (4% shareholding) and (e) East African Development Bank (3% shareholding). The maximum quantity of sugar produced by the company was in 2005, when output amounted to 269,184 metric tonnes. In 2001, the shares of the company were listed on the Nairobi Stock Exchange , where they trade under

1219-577: The audit firm KPMG , found procedural and financial irregularities which top management had hid from the company's Board of Directors, leading to a loss of over KSh1 billion (approximately US$ 12 million), by the company. These developments led to the firing of 52 top managers, including the CEO, CFO, Commercial Director and Company Secretary. The company has asked the government for KSh2.3 billion (approximately US$ 26 million) in bail-out funds, of which KSh500 million (approximately US$ 5.6 million) had been advanced, as of

1272-640: The budgetary allocations to the County Governments. Every Five years the Senate receives recommendations from the Commission of Revenue Allocation (Article 217) and a resolution is passed on the criteria for Revenue allocation. The National Government is constitutionally barred from intruding wilfully with the county government role and function under the Fourth Schedule. Exceptions may require parliamentary approval (Article 191 and 192). The National Government has

1325-509: The changes). The review of the Constitution stalled and negotiations over the adoption of a new text seemed deadlocked. A deadlock only finally broken by the intervention of the African Union through a mediation team headed by Kofi Annan , following the outbreak of serious post-election violence in early 2008. The Constitution of Kenya was the final document resulting from the revision of

1378-424: The collections which were 3 times the debt KCB was owed. They wanted KCB receiver manager to be fired by the court and a new tender process to be announced and administered by the court. They argued that the previous tendering process had virtually collapsed after a barrage of lawsuits were filed,and effectively stopped the operations of Mumias Sugar. In February 2022, 500 former employees of Mumias Sugar who occupied

1431-431: The company's houses claimed that they were served with eviction orders by Sarrai Group, despite court orders stopping the eviction without their salary compensation. Sarrai Group's eviction notices were in violation of court orders. These evictions echo of another controversy involving a Sarrai Group subsidiary in neighboring Uganda, in which Sarrai Group brutally evicted 5,000 people from their ancestral lands, prompting

1484-615: The constitution A three Judge Bench of the High Court has since, in a landmark ruling of a case filed six years ago, declared the inclusion of the Kadhi court illegal and against the principles of non-discrimination, separation of religion and state and constitutionalism. A section of the Muslim leadership vowed to retaliate the ruling by seeking their own judicial declaration that the teaching of Christian religious Education in public school curriculum

1537-550: The family tree with major families arising from the last sovereign Wanga government, with the brothers of King Mumia forming the Patriarchal Heads of the family). Mumias has a noticeable Muslim community, unique in western Kenya. It derives from trade links between Wanga state and coastal Kenya. The town with two sub counties Mumias East and Mumias West in the larger county of Kakamega, is home to various Evangelical, Pentecostal and traditional Christian denominations. The town

1590-400: The first week of February 2015. Legal proceedings against the major culprits in the scam have begun. On 24 September 2019, Kenya Commercial Bank Group (KCB), which was owed KSh545 million (approximately US$ 5.45 million) by Mumias, placed the sugar miller under receivership and appointed the consultancy firm of PVR Rao as the administrator. In December 2021, Sarrai Group was awarded

1643-473: The grounds on which citizenship may be taken away. The text has been criticised, however, for not providing sufficient protections against statelessness for children or adults. After the draft of the constitution was released the type of government which would be implemented with the constitution was a debate amongst the various government coalitions. The two major political parties, the Party of National Unity and

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1696-408: The highest bid of Ksh27.6 billion against Ksh11.5 billion for Sarrai Group, alleged fraud, mistakes and illegalities in the bidding process, which was headed by Kenya Commercial Bank (KCB)'s receivership manager P V Rao. The Receiver Manager filed documents in the court that Tumaz and Tumaz Enterprises did not even produce the required Bid Bond which is the 1st basic requirement for any Bid and their Bid

1749-616: The lease for Mumias Sugar Company as most successful bidder. However, many cases were filed in the Kenya High Court in Nairobi and other places to stop the survival of Mumias Sugar Company Limited as the objective of the lease was the survival of company so that livelihood of 1 million people could be returned. Unsuccessful bidders went to court to suspend the Mumias lease offer to Sarrai Group. The bidder, Tumaz and Tumaz Enterprises, which had placed

1802-410: The lease award. They protested that KCB's receiver manager had erred in awarding the lease to the lowest bidder. West Kenya Sugar company told the court that it was the highest bidder, and yet the lease was awarded at a cost of Ksh5.8 billion to Sarrai Group. They contested that Sarrai Group was the lowest bidder out of 8 bidders who had submitted their bids. The Nairobi High Court judge Okwany issued

1855-604: The lease. They said it was a criminal act as per the Competition Act of the 2010 Kenyan Constitution . In early February 2022 another round of lawsuits were filed by creditors including the law firm of Kimeto, which is owed Ksh76 million. The law firm claimed that the leasing process was fraudulent because KCB's receiver manager had filed documents in court showing that KCB collected over Ksh1.5 billion from running Mumias Sugar since 2018. They argued that KCB's Mumias Sugar debt of Ksh570 million should already have been credited from

1908-468: The location of the conference that adopted it). However, substantial amendments were nonetheless made to this draft prior to a referendum in 2005, resulting in a split in the then ruling coalition. The Liberal Democratic Party faction of the government, led by Raila Odinga , and supported by KANU led a successful 'No' vote against the amended Bomas Draft (called the Wako draft after the alleged mastermind of

1961-424: The newly appointed administrator, Mr. Kereto Marima. The new administrator is to “start the lease process afresh, in consultation with all the secured and unsecured creditors.” 00°19′58″N 34°29′05″E  /  0.33278°N 34.48472°E  / 0.33278; 34.48472 Mumias Mumias is a town in Kakamega County of Kenya . The town has an urban population of 116,358 (2009 census) and

2014-499: The next presidency) — which would produce an over-sized government that debt-laden Kenya could not afford. Kenyatta created a BBI constitutional committee to present the BBI as a popular initiative , allegedly started by ordinary citizens, as allowed by the Kenyan constitution. A BBI task force gathered five million signatures in support of the proposal. The BBI was reportedly a matter of great political importance to both Kenyatta (who

2067-470: The proposed constitution on 1 April 2010. The proposed constitution was presented to the Attorney General of Kenya on 7 April 2010, officially published on 6 May 2010, and was subjected to a referendum on 4 August 2010. The new Constitution was approved by 67% of Kenyan voters. The key changes proposed by the new constitution released are in the following areas: Gains achieved The executive at

2120-506: The protections of the bill of rights. Further amendments to the 1969 constitution were later effected, including, in 1982, the institution of a de jure single party government. The demand for a new constitution to replace the 1969 text with a more democratic system began in the early 1990s, with the end of the Cold War and democratic changes taking place elsewhere in Africa. The single party system

2173-483: The reform. Non-profits concerned with civil society and other reforms also praised the approach. For example, the Africa director for the International Foundation for Electoral Systems said that "The fact that they are bringing in stakeholders to lend their voice and make recommendations will strengthen civil society because they will keep a close eye on the process and, if it is passed, will ensure that it

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2226-611: The reforms set out in the country's Kenya's 2007–2008 election violence and should reaffirm its complete cooperation and commitment to the ICC.". Researchers at the UK-based Overseas Development Institute have praised the 2010 Constitution as a positive step forwards in terms of securing greater equity for women and children in Kenya, highlighting "A new narrative for social justice " and "Institutional reforms to strengthen accountability ". However, they stress that

2279-474: The symbol MSC . The table below illustrates the shareholding in the company as at September 2014. Dan Ameyo , one of the non-executive directors, serves as the chairman of the board of directors . The chief executive officer is Errol Johnson . The major objectives of establishing Mumias Sugar Company were to: Beginning in 2012, the company began experiencing lowered sugar output and deceased profits, initially blamed on "inefficiency". A forensic audit by

2332-584: The top football teams in Kenya until it was disbanded in 2007. Five minutes outside Mumias town, on the road to Kakamega , there is a hospital, St. Mary's Mission Hospital and a medical college, St. Mary's School of Clinical Medicine. They are run by the Catholic Diocese of Kakamega (Mumias parish) which also sponsors several public primary and secondary schools namely: St. Mary's Girls High School, St. Anne's Mumias Primary School, St. Peter's Mumias Boys Primary School and St. Peter's Boys' High School. The town

2385-507: The top most levels will be constituted of a president , deputy president and the Cabinet . The key functions of the President of Kenya are as follows: The Legislative branch is multicameral and will constitute of the following Source: There will be three superior courts: An independent Judicial Service Commission has been set up to handle the appointment of judges. They will recommend

2438-460: The whole world praised the approach that the Kenyans took to constitutional reform, seeing it as a viable way to keep corruption in check. United States Secretary of State Hillary Clinton said that "I am pleased that they have taken this step, which represents a major milestone." Other United States diplomats also commented on the unity and meaningful intent which Kenyans were presenting in approaching

2491-526: Was disqualified. Mumias Sugar was placed under receivership in 2018 by KCB, which was one of its creditors. Justice Kenneth Ndung'u of Milimani High Court in Nairobi suspended the lease award and ordered KCB's receiver manager and Sarrai Group not to interfere with Mumias Sugar until the case was heard and determined. In January 2022, other bidders including West Kenya Sugar Company were enjoined in new cases filed against Sarrai Group and P V Rao. A group of Mumias sugar farmers filed another lawsuit challenging

2544-408: Was due to leave office shortly thereafter) and Odinga (who was expected to run for the presidency), and reportedly bribes of up to $ 1,000 (£700) were given to some members of Parliament to secure support for the BBI. The issue dominated Kenyan politics from 2019 to 2021. The BBI was passed by Kenya's National Assembly and Senate, and was awaiting President Kenyatta's approval when it was challenged in

2597-422: Was ended in 1991, and the first presidential election took place in 1992. Calls for a comprehensive review of the 1969 Constitution intensified in the late 1990s and early 2000s, helped by the victory of the opposition National Rainbow Coalition (NARC) party in the 2002 general elections. Official and civil society consultation processes led to the adoption of what became known as the "Bomas draft" constitution (after

2650-451: Was illegal, and the five million signatures it gathered were not proof that it was a true citizen-led initiative, saying: The court added that the president had failed to pass the leadership and integrity test—warning that he could be sued, personally, for his actions. The court's ruling established grounds for impeachment of the president—though the parliament, which passed the bill, was reported unlikely to challenge Kenyatta. Generally

2703-530: Was known as Lureko until it was renamed Mumias. The Nabongo Cultural Centre in Matungu showcasing the Wanga Kingdom was opened in the outskirts of Mumias in 2008, near the traditional homestead of Wanga kings (Nabongos). The town has two major religions, Christianity and Muslims although most other religions are found here. There are very many churches is the town and surrounding areas. The area of Lukoye has

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2756-418: Was presented to the Attorney General of Kenya on 7 April 2010, officially published on 6 May 2010, and was subjected to a referendum on 4 August 2010. The new Constitution was approved by 67% of Kenyan voters. The constitution was promulgated on 27 August 2010. Constitutional reforms involving wholly new texts since gaining independence: in 1969 and in 2010. In 1969, the 1963 independence constitution

2809-422: Was replaced with a new text that entrenched amendments already made to the system of government that the independence constitution had contemplated. These changes included: changing the structure of the state from a federal, or Majimbo system, to a unitary system; creating a unicameral instead of bicameral legislature; changing from a parliamentary to a presidential system with a powerful presidency; and reducing

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