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Devki Group of companies that had declared it would invest Sh5 billion to revive the troubled Mumias Sugar Company has withdrawn its bid to lease the firm.

In a statement emailed to newsrooms, the group which manufactures steel, aluminium and cement said it made the decision due to the ongoing public interest which the matter has attracted and the call for a publicly ran bidding case.

Devki Group of Companies executive chair Narendra Raval however said that the group will express interest should the exercise be conducted in consultations with all the stakeholders.

“Devki group of companies to lease wishes to inform the general public that it has withdrawn its bid to lease Mumias Sugar Company (MSC) Limited (in Receivership),” reads the statement.

In the statement, Raval said that as a local investor with an understanding of the local operations of the company they had expressed interest in reviving the miller following an invitation by the Receiver Manager.

According to him, the interest of his company was to revive the MSC and ensure it is running for the benefit of all stakeholders including the farmers and the local communities.

“We wish the receiver manager success as they seek the most appropriate method of revival and or partner to take Mumias to the next level, “adds the statement.

The decision by Devki comes just a day after a cross section of leaders from Western demanded to know the criteria used to pick the investor and when the bidding took place.

The leaders who included Amani National Congress (ANC) Party Leader Musalia Mudavadi, his Ford Kenya counterpart senator Moses Wetang’ula (Bungoma) and Kakamega senator Cleophas Malalah called for transparency on the leasing process.

Mumias Sugar Company is a public entity and traded in the Nairobi Security Exchange and therefore transactions on it must be done transparently.

“It is important that we have a high level of transparency as KCB bank or the receiver are looking at the possibility of getting investors. We want to emphasize that it is important the process be done smoothly and above board,” said Mudavadi.

On his part, former Butere MP Amukowa Anangwe said he supported the revival of the sugar miller and termed some of those opposed to revival of the factory as “the usual hounds that always hope to get kickbacks.”

“These dubious characters should stop sabotaging the efforts to revive the factory or some of us will take them head-on,” the former Cabinet Minister said in a statement.

Navakholo MP Emmanuel Wangwe said Raval was the farmers’ only hope as other previous attempts to revive the once East and Central Africa’s largest sugar producer had been unsuccessful.

Busia Out-growers Company director Lambert Ogochi challenged KCB and receiver manager to come out and make Kenyans understand how they ‘settled’ on Raval.

Ogochi said at least 30 people expressed interests to take over Mumias, therefore ratings of how each performed during the ratings by KCB he said should be made public for the sake of transparency and accountability.

According to Mr Ogochi, it is not going to be easy for the new investor to take over Mumias without the goodwill of the farmers and elected leaders from the region.

“We are happy as farmers that our leaders particularly Mudavadi and Wetang’ula have voiced their concerns about Mumias; it is in the interest of both the farmers and the members of the public,” Ogochi maintained.

KCB Group placed Mumias Sugar Company under receivership in 2019 and appointed Ponangipalli Venkata receiver manager.