How does this bhai make money where all the nyeuthis, in this case greedy Abaluhyas have tried and failed? @Ndindu help explain the rational of buying an already dead company, you can’t say Nzoia was struggling, it was already buried, or how do you explain a debt of 55 birrions? @Simiyu22 tulisema Mali ya waluhya ibaki tu huko kwa waluhya sindio? Government will just get in to steal from mwananchi sindio? How about bhai?
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The company(ies) was(were) mismanaged to death. Ile sukari tunakula hapa Kenya those companies could have comfortably supplied without us going to Mexico for sugar.
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Since I actually live here, I’ll tell you straight up that these sugar companies simply struggle with managing thousands and thousands of small to medium scale farmers. And the payments also have to be distributed to the same multitude, leaving room open for a lot of theft and pilferage.
Kageges had this same problem with coffee and milk, before the educated ones solved it via the promotion of credit unions or similar bodies (Sacco’s) which simply consolidated everyone into one large body that can negotiate as a unit (e.g. KTDA, KPB).
What does mhindi do different? He buys directly from farmers, by providing modified tractors that ferry product from inside the villages directly to the factory. Where he pays per tonne (~$100). Obviously this has to require quite a serious amount of capital hence Rai (not the one on pornhub, but I digress) must be backed by some serious muhindis.
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Not without government intervention. Sugar cane from Mexico is grown on a large scale. So it’s 40% price of Kenyan sugarcane grown on subsistence/ small farms. So Rai, only buys Kenyan sugarcane because he must. But he can eke out a small profit now because he didn’t invest in equipment. He’s paying minimum from government. Plus, he will will go in there and forge books and cry for government stimulus like KQ.
How exactly can government rescue sugar? One way I told @Josto_Bwaku is to require all available sugarcane locally to be purchased before any import license can become active for the year. This can be done using a quota eg 10,000 tonnes purchased before freeze is lifted. And at a set price.
Rai is not really an industrialist but a crook. He makes his living by circumventing government regulations. Here he hasn’t invested in equipment, at least not very much. So it’s like you being given a petrol station to run and instead of paying 100k per month( rent + facilities), you pay 10k. How hard is that ??
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Yes, he is a crook.. but if there’s a gap in the market, why not exploit it? The Nzoia sugar factory might be old, but it’s machinery is quite new and expensive so his return on investment in the 30 years he’ll be running it will be 200%-500%, best guesstimate.
Then he can be governor like Oparanya.. 5D chess.
Can the same be said of Gold?
Not commercial quantities so far.
There’s no actual gap but artificial vacuum, which he and his mafia have created. Government requires a license to process sugar, which he and his cohorts are given. Then, instead of processing sugar, they purchase it from Brazil. They leave local cane farmers hanging, season after season. So the farmers abandon the trade. A vacuum is created. So now, they have a justification to import.
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What is coming out clear is, the Baengele can’t run the show alone. They’re hunting for another heavyweight to help them form an oligopoly that’ll make our sugar so cheap and the Mexican sugar too pricey to tempt anyone to import. They haven’t found the right dance partner yet, but once they do, everyone will see it as a match made in heaven. Farmers will thrive, economy will grow and the lamenting will stop.
For now, they are getting into bed with Rai, let’s see if he has the stamina and prowess that a man in Western region is supposed to have to keep the marriage going.
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We still grow it for local consumption, as those familiar with reality will tell you Mumias sugar is still sold in the village shops. It’s minimal revenue.. but the land is still ours, so eh. If the national government wants to bankrupt itself so 3 people can make $2 million a year, that’s fine by us. We’re not the ones in the slums (aside from Kangemi, parts of Kibera and parts of Mombasa aka outliers)
#JB
Yes. Getting into bed with muhindis is a journey in itself.
Wewe na akina nani? Meffi
Zachayo owns shares in Rai after kumtisha.Remember the kenyattas were using Rai vile Moi used Pattni and wahindis to hide loot.
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This was before he found out how government debt financing actually works. And how much debt we’re in thanks to the Dom Perignone with Kibao vodka connoisseur pale Ichaweri grounds.
The Rai family is backed by itself.Shida ya sisi nyeuthi we cant comprehend planning so long term beyond your own life.The average kenyan bora afike mbinguni ako sawa watoto wake wangangane kama yeye na babu zake.The family has roots in the entire Eastern Africa region having companie in Kenya,UG,Malawi,etc.They are mostly involved in resources extraction kama cement,sugar and timber(Comply Nakuru). Resources big business inahitaji thick skin and general mafia like tactics.
The father of Sarbjit Singh Rai, the most senior family member, migrated from his India and established businesses in Kenya. The father’s brother, who either came with him or followed him to Kenya, also established his own businesses. After the two brothers died their sons expanded and diversified, but they operate separately. Sarbjit Singh Rai moved to Uganda and started the Sarrai Group. His cousin Jaswant Rai, stayed in Kenya, where he operates sugar plantations and other businesses.
In 2023, Sarrai Group signed binding documentation kununua 70 percent of Hima Cement that Holcim held in the cement maker, through several subsidiaries including Bamburi. The purchase price is reported as US$84m. The deal required approval in Kenya,Uganda,Switzerlnd na Comesa body.
Sarrai and Mumias sugar imekuwa makesi juu ya fraud where KCB bank was also involved.Sarrai has also evicted thousands of farmers from their land in Uganda.I said before Indians are the main beneficiaries of graft in Kenya and Uganda.
The family have numerous court cases going on among family members.
Moi’s family investment company, Kabarak Limited, held a 1.4% stake in Raiply, leading to public suspicion of political patronage. The Kenya Forestry Service has continued to issue logging licenses to Raiply, despite bans on logging indigenous hardwoods.
In a case from the early 1990s, some Rai siblings accused their brother, Jaswant, of siphoning money from the family business and investing it in companies associated with the Kenyatta family, Timsales and CBA.
Ukiona big moves za wahindi saa hii,they go all the way back to their ancestors during a time when our grandfathers were uneducated,poor and clueless about the modern world.
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I’ve seen this happen in families where parents block their children’s success as they genuinely believe a successful child is a threat to their own success. And by extension, authority.
The cause is simply human in origin. No need to worry about such destructive behaviours though, as malice and paternal/filial love are mutually exclusive. So the dissonance is eventually merged into mental instability.
Rai alifinywa makeing Hadi akatoa za stage
Mumias under Bookers used to do the same successfully. Shida ni wizi
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