Deal #1371

Tana Integrated Sugar Project (TISP)

Tarda project is being funded through both loans from financial institutions and shareholders’ funds on a 50:50 basis. Mumias Sugar Company Limited plays a significant role in Kenya's sugar industry, but it has faced challenges in recent years, including financial difficulties, legal disputes, and management issues. Beginning in 2012, the company began experiencing lowered sugar output and deceased profits, initially blamed on "inefficiency". A forensic audit by 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. 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.