Court revokes Ramana Rao’s appointment as Mumias Sugar receiver manager

BySacco Review

Apr 18, 2022

By Andrew Walyaula

The High Court has ordered for the immediate removal of Ramana Rao as Mumias Sugar company receiver- manager.

In his ruling, Justice Alfred Mabeya   said that Rao hadn’t complied with the court order that required him to call a creditor meeting to affirm the total amount owed by the company.

The order was issued on November 19, 2021 

Justice Mabeya further stated that Rao, who was appointed by the Kenya Commercial Bank, seems to be serving the interests of the bank and not farmers or creditors.

It was further revealed that Rao hadn’t given any information on how he would pay the debts owed to farmers and creditors.

The court found out that Rao released the assets of the company to the lowest bidder Sarrai holding at Shs 5.8 billion instead of West Kenya Sugar company Limited that had placed a Shs 36.7billion bid.

Matela Malima was appointed by the court to replace Rao and was ordered to compute all assets and debts owed by Mumias Sugar Company in 60 days and file the same in court. 

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