The revival hope of Mumias Sugar Company has been dealt a blow following the withdrawal of Devki Group company that had promised to inject in 5billion.
The steel and cement manufacturer on Friday 4th June released a statement to confirm their intention to pull out their lease bid.
“Given the ongoing public interest which the matter has attracted and the call for a publicly run bidding exercise, we have found it worthwhile to take out our application,” said Devki Group Chairman Narendra Raval.
Raval also cited the increased case of public scrutiny as a major reason to have caused the withdrawal.
Poor governance, heavy borrowing and investments in projects that never give returns were noted to be major causes that led to collapse of the giant sugar miller that was once an economic backbone of the western counties.
Last month, Devki chairman Narendra Raval revealed that the company had been shortlisted in the Mumias Sugar takeover process by the miller’s receiver manager.
However, he noted that they will still be open to render their efforts in revamping the company to full operation scale if exercise will be conducted in consultation with all the stakeholders.