The Rai family now controls almost half of the sugar market

0

Companies

The Rai family now controls almost half of the sugar market


West Kenya Sugar President Jaswant Singh Rai. PHOTO | JEFF ANGOTE | NMG

geraldandae

Summary

  • Billionaire Rai’s family has tightened its grip on the sugar market, with the latest figures showing it controlled nearly half of sales in the past six months.
  • Data from the Sugar Directorate shows that the three companies owned by the Rai family controlled 45 percent of total sales.
  • This increased from the 41 percent market share they held in the corresponding period last year.
  • Western Kenya takes the lion’s share at 29%, followed by Sukari Industries with 11%, with Olepito coming in third with 2% of the 292,040 total sales reported between January and June.

Billionaire Rai’s family has tightened its grip on the sugar market, with the latest figures showing it controlled nearly half of sales in the past six months.

Data from the Sugar Directorate shows that the three companies owned by the Rai family controlled 45 percent of total sales.

This increased from the 41 percent market share they held in the corresponding period last year.

Western Kenya takes the lion’s share at 29%, followed by Sukari Industries with 11%, with Olepito coming in third with 2% of the 292,040 total sales reported between January and June.

“Most of the improvement in sugar production has been recorded by private factories, with West Kenya and Butali Sugar accounting for 28 percent and 15 percent of total production, respectively,” management said.

Western Kenya has long been the leader in sugar production and sales, controlling almost a third of the market share.

On the other hand, state-owned factories performed poorly, with a number of them remaining closed during the review period.

“All government-owned factories except Chemelil have reported a drop in sugar production due to a limited supply of cane and inefficiencies at the factories,” the regulator said.

The Mumias and South Nyanza sugar companies remained closed during the period under review. Mumias has been closed for almost two years now.

Other private millers saw improved sales, with Transmara selling 37,545 tonnes of sweetener, Kibos (42,565) and the Busia factory 14,341.

The state-owned Nzoia established itself among the government millers, recording sales of 9,033 tonnes, followed by 5,239 tonnes, Chemelil 7,326 and Muhoroni by 5,239 tonnes.

The state plans to lease all of its factories to strategic investors in order to give them a new lease of life through new capital injections to improve productivity and reduce imports.

Share.

Comments are closed.