Originally Syndicated on September 4, 2023 @ 6:08 am
Sugar Oligarch Jaswant Rai shocked the international market when he became the victim of a kidnapping. Jaswant Rai‘s family reported his disappearance to the police on a fateful Saturday. They revealed that he had been abducted after finding his vehicle abandoned by the roadside.
Reportedly, captors took Jaswant Rai, a prominent billionaire, captive in the Kilimani area on Friday, August 25. CCTV cameras situated on Wood Avenue in Kilimani, Nairobi, caught the incident. Despite the footage, mystery shrouded his exact location.
The family responded to the alarming situation by registering a missing person’s case under OB No. 21/26/08/2023. However, on Sunday, Senior Counsel Kioko Kilukumi, Rai’s lawyer, confirmed that they had released him from captivity, which was a positive turn of events.
The police briefly interrogated Jaswant Rai after releasing him before allowing him to seek medical attention at a hospital. Although people initially suspected law enforcement involvement in the kidnapping, the police vehemently denied any connection to the incident. They assured the public that they would thoroughly investigate the matter and uncover the truth behind this disturbing event.
Table of Contents
Who is the sugar oligarch Jaswant Rai?
Jaswant Rai‘s leadership of a chain of enterprises has earned him renown, despite limited knowledge about his educational and professional history. Various East African nations are reached by these ventures. Tarlochan Singh Rai’s passing in 2010 left behind a substantial multimillion-dollar inheritance, and he was appointed as the chairman and executor of his father’s estate.
Rai, a prominent figure in the sugar industry within the country, is believed to control at least 43 per cent of Kenya’s sugar market. He owns West Kenya Sugar, which holds Kabras Sugar, Sukari Industries, and Olepito. Mr Rai assumes the role of chairman at the helm of the Rai Group. The family-owned conglomerate also has interests in diverse sectors, including cement production, horticulture, edible oils, sawmilling, and real estate.
Jaswant Rai oversees Rai Cement, Menengai Oil Refineries, Timsales, RaiPly, and Webuye Panpaper, in addition to his other ventures. The billionaire possesses Tulip Properties in his portfolio, further diversifying his investments into wheat farming and horticulture.
Jaswant Rai’s Family
Jaswant Rai is a scion of the affluent Rai family, one of Kenya’s wealthiest. He is one of five sons born to his late father, Tarlochan Singh Rai, who passed away in 2010, and his mother, the late Sarjij Kaur Rai.
Jaswant occupies the leadership position within the Rai group of companies. This conglomerate possesses a diverse portfolio, including ownership of West Kenya Sugar Factory (Kabras Sugar), Menengai Oil Refineries, Timsales, Raiply, Webuye Pan Paper, and Tulip Properties.
His younger brother, Sarbi Singh Rai, presides over the Sarrai Group of companies, primarily situated in Uganda. This group oversees more than ten companies across Malawi and Uganda, including three sugar mills, and is responsible for the renowned Kinyara Sugar brand in Uganda.
However, despite their fraternal bond, Sarbi and Jaswant found themselves at odds over the distribution of their father’s vast wealth. This discord led Sarbi to disengage from the family enterprise, the Rai Group, and take charge of the Sarrai Group of Companies.
Remarkably, these familial disputes are not isolated incidents. The Rai family has a history of involvement in numerous legal battles related to the allocation of their patriarch’s multi-billion-dollar estates.
Interestingly, Jaswant served as the executor of his father’s will, which encompassed a wide array of assets, including Rai Plywoods (K) Ltd., Rai Produces Ltd., Rai Holdings Ltd., Rai Agriculture Enterprises Ltd., Rai Investments Ltd., and Rai Ceramics Ltd.
Beyond these assets, he possessed additional properties such as Tulip Properties Ltd., Rai Expo Park Ltd., and residences in Kampala, Runda, and Canada. Furthermore, his Absa accounts held a minimum of Sh329 million.
In addition to these endeavours, Jaswant also left his mark on Rai Management and Technical Services Limited, a company registered in the tax haven of Jersey Island. He also held millions of dollars in accounts at Citibank branches in London and New Delhi.
The family patriarch amassed his wealth in the Democratic Republic of the Congo (DRC) by acquiring plantations abandoned by departing colonialists. In the 1970s, he relocated to Kenya with his family, establishing deep roots in the country.
Kabras Sugar, the backbone of Jaswant Rai’s Business Ventures
Kabras Sugar stands as one of Jaswant Rai‘s prominent achievements. As the owner of the Rai group, he presides over the West Kenya Sugar Mill, renowned for its Kabras Sugar brand. His ownership extends to three other mills: Olepito, Sukari, and Naitiri.
In a strategic move in 2022, this oligarch expanded his influence within the sugar sector by inaugurating the Naitiri factory in Bungoma. This venture secured him an impressive 50 per cent stake in the country’s sugar production.
Significant data from the sugar directorate underscored the scale of his impact, revealing that his factories were responsible for a remarkable 45% of the sugar output in the nation during 2022. This surpassed the production of well-established millers like Nzoia, Chemilil, Busia, and South Nyanza.
His position of dominance has been further solidified by his successful collaboration with over 200,000 sugarcane farmers from Western, Nyanza, and various parts of the Rift Valley. This formidable network has given him a competitive edge in securing essential raw materials, posing challenges for his industry rivals.
Jaswant Rai‘s influence within the sugar industry has indeed earned him the moniker of the “sugar godfather,” a testament to his adeptness in navigating the complexities of this sector.
Dominenecy of Sugar Oligarchs like Jaswant Rai
Jaswant Rai’s remarkable success can be significantly attributed to his formidable connections with the political elite. These connections span from the Moi Era to the current Kenya Kwanza regime, rendering him practically untouchable in his endeavours.
Beyond national borders, his influence extends to Uganda, where he possesses the second-largest sugar factory, Kanyara Sugar Works, and to Tanzania, where he stands as the sole paper manufacturer with ownership of Mufumbira Paper Mill.
In January 2021, Rai’s son, Tajveer, tied the knot with the daughter of another notable figure in the sugar industry, Mr. Ragbirr Singh, commonly known as Birre, the proprietor of Kibos Sugar. The opulent affair saw the presence of prominent figures such as then-Deputy President William Ruto and current Defence Minister Aden Duale.
Rai’s network even encompasses the Kenyatta family, with a close friendship reportedly established between him and Muhoho Kenyatta. Muhoho, a regular attendee at Rai’s private functions, further illustrates the depth of these connections.
Being a billionaire, Rai’s lifestyle aptly reflects his status. His wardrobe is graced by outfits crafted by Ozwald Boateng, the renowned English designer, whose clientele includes Hollywood celebrities, Ugandan President Yoweri Museveni, and several of Kenya’s cabinet ministers.
The extravagance is evident in the price tags as well: one of Boateng’s sleek suits commands a hefty sum of at least sh 500,000, a tie sh 20,000, and a shirt sh 54,000, as reported by the Daily Nation.
Beneath the opulence, Jaswant Rai remains a devoted family man. He shares his life with his wife, Sarjij, and their family comprises seven children: sons Jasbir, Jaswant, Sarbjit, and Iqbal, along with daughters Hertej Ashwin Oza, Daljit Kaur Hans, and Sarbjit.
Kidnapping Case
Jaswant Singh Rai, often referred to as a sugar king, has not been immune to intense criticism. The magnate grabbed the spotlight during the weekend as news outlets echoed reports of his abduction. On Saturday, the 26th, his daughter filed a report of his disappearance at Kilimani Police Station, while a CCTV recording presented by his family depicted unidentified individuals compelling Mr Rai into a grey pickup truck and hastening away on Friday.
Nevertheless, the billionaire was later released and reunited with his family on Sunday evening. His attorney affirmed that he had been shaken by the incident but remained physically unscathed.
While the Directorate of Criminal Investigations (DCI) pledged a thorough inquiry into the matter, security agencies conceded uncertainty about whether the occurrence constituted a kidnapping.
The narrative surrounding businessman Jaswant Singh Rai’s alleged abduction, accusations of money laundering, political affiliations, and controversies within his sugar business has taken an unexpected turn.
Nurdin Akasha, a well-known member of the Akasha criminal syndicate, departed from Kenya shortly after the apprehension of Yogesh Pattni, CEO of Victoria Commercial Bank (VCB), due to suspicions of unlawful business transactions with Jaswant Singh Rai, who indirectly holds a 40% stake in the bank through intermediaries.
Nurdin Akasha, also recognized as “Nurdin Tinta Akasha,” is the son of Ibrahim Akasha Abdalla, the late leader of the Akasha criminal family.
It is believed that he fled Kenya shortly after Yogesh Pattni’s arrest on August 28, 2023.
Nurdin Akasha’s current whereabouts remain unknown, and authorities are also seeking him for his involvement in the money laundering and arms trading scandals that shook the nation during the tenure of former President Uhuru Kenyatta.
Trustworthy sources have informed us that Nurdin Akasha had a close association with Yogesh Pattni, who facilitated the activities of money laundering and arms trading through the VCB.
Nurdin Akasha leveraged his connections with Yogesh Pattni to transfer substantial amounts of money from VCB accounts to offshore accounts situated in Dubai, Mauritius, and other nations.
Subsequently, these funds were employed to sponsor illegal pursuits like drug trafficking and political campaigns.
Nurdin Akasha is apprehensive that Yogesh Pattni’s arrest could have negative repercussions for him, given that he might become the next target for the Directorate of Criminal Investigations (DCI).
Considering Yogesh Pattni’s potential to reveal information during interrogation or under duress, there is a genuine concern about implicating Nurdin Akasha in these criminal undertakings.
To forestall this risk, Nurdin Akasha made the decision to leave Kenya, ensuring his personal safety.
Arrest of Yogesh Pattni
On August 28, 2023, Yogesh Pattni was apprehended by the DCI’s banking fraud unit, prompting concerns about potential state-sponsored gangland-style abductions. Sources indicate that he was apprehended by investigators from the anti-banking fraud unit at his office in Two Rivers Mall on Monday morning. Over the course of the day, Pattni was interrogated at the Kiambu Road-based facility, a fact confirmed by his attorney, Gibson Kimani. Pattni is currently under suspicion for his alleged role in facilitating money laundering and arms trading through Victoria Commercial Bank (VCB).
His association with Jaswant Rai, who is also suspected of exploiting VCB to launder funds originating from his sugar business and other ventures, further complicates the situation. Pattni faces accusations of utilizing VCB’s financial resources to acquire both local and international assets and properties. As the investigation continues, the DCI has seized a substantial number of documents and records from the offices and residences of VCB and Rai.
Additionally, law enforcement has taken steps to freeze multiple bank accounts belonging to Rai, Pattni, Nurdin Akasha, and individuals affiliated with them. While the precise cause of Yogesh Pattni’s arrest remains unclear, it is believed to be linked to the ongoing Mumias Sugar controversy.
Mumias Sugar controversy
Mumias Sugar, previously the largest sugar producer in Kenya, underwent receivership under the oversight of Kenya Commercial Bank (KCB) in 2019. The primary objective was to safeguard its assets and ensure the continuation of its operations.
The company had outstanding debts to KCB and various other creditors, totalling over 29 billion shillings ($264 million).
KCB entrusted the management of Mumias Sugar to Ponangipalli Ramana Rao as part of a revitalization strategy.
Documentation revealed a noteworthy sequence wherein a selection of Mumias Sugar’s assets, previously collateral for loans from Eco Bank and French Development Agency Proparco, were transferred from these institutions to Victoria Commercial Bank (VCB) through a transaction arousing suspicion.
The assets in question, including a co-generation plant valued at 1.9 billion shillings ($17 million) and ethanol valued at 4 billion shillings ($36 million), eventually became the possession of Dubai-based entity Vartox Resources Inc.
This transfer of assets appeared to disregard an inter-lender agreement established on September 27, 2010. This agreement distinctly excluded the two joint assets from the ambit of existing lender security.
Within this agreement, it was stipulated that each lender would be responsible for notifying other relevant parties about any changes, terminations, amendments, or transfers involving security.
Surprisingly, both Proparco and Ecobank proceeded to relinquish their rights to Victoria Commercial Bank on October 4, 2021, without providing prior notification to KCB, Barclays Bank, or Stanbic.
Remarkably, these transactions coincided with the period when the receiver-manager was actively engaged in negotiating leases to ensure the survival of Mumias Sugar.
The apprehension of Yogesh Pattni and the escape of Nurdin have triggered investigations into the extent of their involvement in activities such as money laundering and arms trading. These inquiries also delve into their affiliations with the sugar industry and the upper echelons of politics.
Abduction of Jaswant Rai
On August 25, 2023, there were allegations that Rai was forcibly taken by unidentified individuals near Wood Avenue in Kilimani.
The incident transpired as his Toyota LC200 was ambushed at the junction of Wood Avenue and Kilimani, adjacent to Kenwood Apartments, around 4 p.m.
The attackers, in a grey double-cab pick-up truck, intercepted his vehicle.
The entire occurrence was captured by CCTV footage, which revealed four people exiting the pickup and forcibly extracting the occupants from Rai’s car.
They swiftly departed towards Galana Road.
The billionaire’s car was left running on the road, and later, Kilimani Police Station received notification of an abandoned vehicle corresponding to the description. Consequently, the vehicle was towed to the station.
Minor damages were observed on the front right side of the vehicle, indicative of contact with the pickup.
A formal report was submitted, bearing the reference number OB 40/25/8/2023.
The subsequent day, a woman who introduced herself as Mr Rai’s daughter, accompanied by legal representation, visited the police station to officially report her father’s disappearance as a missing person.
This report was officially documented under OB number 21/26/08/2023.
The woman not only confirmed ownership of the towed vehicle but also provided essential information.
Meanwhile, the Director of Criminal Investigations, Mr. Amin Mohamed, clarified that their department did not have Rai in custody and lacked a designated detention facility for him.
However, he affirmed that the situation remained under thorough investigation.
Rai regained his freedom two days later, on August 27, 2023, after being allegedly released by those who had previously abducted him.
Subsequently, he underwent brief police questioning before being granted permission to seek medical attention.
Throughout this process, he abstained from disclosing any particulars about his captors or their underlying motives.
It has been suggested that the abduction of Rai might have been orchestrated as a diversion, potentially to draw attention away from his alleged involvement in money laundering and other illicit activities connected to his sugar enterprise and his purported connections with the Kenyatta family.
Money Laundering Scheme
Both Jaswant Rai and Pattni have undergone questioning by the DCI regarding matters linked to money laundering. The crux of this inquiry revolves around a sophisticated strategy for transferring substantial monetary sums via VCB.
Simultaneously, the Central Bank of Kenya is initiating a parallel investigation into this subject. The modus operandi functions as follows: substantial funds are diverted from VCB bank accounts and directed towards distant offshore destinations like Dubai and Mauritius.
Upon reaching these destinations, these funds are employed to facilitate unlawful activities, encompassing arms trading, the distribution of narcotics, and even bolstering political campaigns.
The primary attention is directed towards Rai, who is suspected of exploiting VCB as a conduit to obscure the origin of funds generated from his sugar enterprise and other business ventures.
Additionally, he faces allegations of tax evasion and involvement in bribery to secure preferential treatment in contractual affairs.
Similarly, Pattni, who holds a significant position within VCB, is believed to play a pivotal role in facilitating the mechanics of the money laundering operation owing to his influential standing.
There are allegations that he has utilized VCB’s resources to acquire real estate properties on both a domestic and international scale.
The DCI has confiscated relevant documents from Rai’s premises and VCB’s offices, a manoeuvre intended to bolster their thorough investigation into this intricate scheme.
To deter the advancement of potentially illicit activities, the DCI is contemplating the step of freezing a multitude of bank accounts associated with Rai, Pattni, and even Nurdin Akasha, in addition to their associates.
This resolute measure underscores the gravity of the investigation as authorities diligently work to uncover the concealed manoeuvres that might be unfolding behind the scenes.
Political Connection
In a recent scenario, both Jaswant Rai and Yogesh Pattni were detained for an extended period by the Directorate of Criminal Investigations (DCI) at a Nairobi airport due to matters associated with money laundering. During this period, Rai was questioned regarding his connections to Muhoho Kenyatta, the brother of former President Uhuru Kenyatta, and the alleged financing of opposition figures, which includes Raila Odinga’s bid for the presidency in the 2022 general elections.
It has been stated that Rai utilized his influence with Muhoho Kenyatta to secure advantageous agreements and contracts from the government during the tenure of President Uhuru Kenyatta. Additionally, there are claims that he gained protection and legal immunity against prosecution for his unlawful activities.
Sugar Scams
Jaswant Rai has a history marked by a series of disputes and scandals tied to his sugar enterprise.
He possesses multiple sugar companies in both Kenya and Uganda, encompassing names like West Kenya Sugar Company, Sukari Industries, Menengai Oil Refineries, Kinyara Sugar Works in Uganda, and Rai Paper Mills.
In the era when former President Uhuru Kenyatta held office, Rai encountered allegations concerning the importation of sugar contaminated with mercury from both Brazil and Dubai.
The imported sugar was found to have elevated levels of toxic substances like mercury, copper, lead, arsenic, and others, thereby posing notable health hazards to consumers.
Rai faced accusations of collaborating with governmental authorities and institutions to sidestep inspection and clearance protocols at the port of entry. Charges were levied against him for the repackaging and relabeling of the sugar as domestically produced, a ploy that misled unsuspecting consumers.
The operational conduct of Rai’s business has additionally come under scrutiny with allegations of exploiting farmers and manipulating sugar prices.
These allegations encompass practices such as delaying payments to farmers, offering inadequate compensation, and implementing unjust deductions and fees.
Furthermore, Rai has frequently faced accusations of hoarding sugar to artificially create shortages and subsequently inflate prices.
Rai’s business endeavours have encountered resistance from key players within the industry, including the state-owned Kenya Sugar Board (KSB) and the Kenya Sugar Research Foundation (KESREF).
The illicit import of sugar from neighbouring nations, such as Uganda and Tanzania, has dealt a detrimental blow to Rai’s commercial activities.
At one juncture, he confronted accusations of involvement in smuggling and the unscrupulous dumping of sugar into the Kenyan market. This, in turn, led to an environment of unfair competition and detrimentally impacted local producers.
Environmental degradation and the violation of human rights have also been tied to Rai’s sugar enterprises.
Specific accusations encompass actions like contaminating water sources, engaging in deforestation, displacing communities, and mistreating workers within his sugar plantations and factories.
Ruto Talks
President William Ruto issued a stern warning to private millers on Sunday, emphasizing his unwavering commitment to regulating the sugar industry in order to rejuvenate government-owned enterprises.
Speaking at the interdenominational thanksgiving and prayer service held at Uwanja Ndege Grounds in Bungoma County, the visibly determined Head of State asserted that he would not idly stand by while a select few exploit the Kenyan populace economically.
His attention was particularly directed towards Jaswant Rai. The Rai Group commands control over more than 40 per cent of the nation’s sugar production and its corresponding market provisions.
“Be assured, I am vigilant to ensure that all is set right. No one will interfere,” the president reassured the local residents, expressing his dedication to revitalizing the sugar sector.
He stated, “There’s no need for concern about someone trying to sway us. I heard about Rai. Who is Rai? No, that’s not a possibility,” Ruto declared.
The President expressed his bewilderment over the fact that privately held sugar companies were generating greater profits compared to their publicly owned counterparts, despite the government’s significant financial investments in the latter.
His commitment lies in ensuring equitable prices for farmers, providing consumers with both quality and affordable sugar, and eradicating corruption and cartels from the industry.
Mutahi Ngunyi tells Ruto to emulate Putin with oligarchs
Political analyst Mutahi Ngunyi has offered his perspective on how President William Samoei Ruto should handle business magnate Jaswant Rai, drawing parallels to Russian President Vladimir Putin’s approach to oligarchs. President Ruto’s dealings with Rai and others, whom he accuses of obstructing the resurgence of the Mumias Sugar Company, have stirred controversy. During his visit to the western region, President Ruto emphasized that his administration would not tolerate such individuals, cautioning that they should either adhere to his directives or leave the country.
While Ruto’s statements have garnered criticism from the Law Society of Kenya and the Azimio La Umoja One Kenya Alliance, Professor Mutahi Ngunyi appears to present a different viewpoint. In a post shared on his official Twitter account, the analyst advised President Ruto to take inspiration from Russian strongman Vladimir Putin, who employs stringent measures against oligarchs in Russia. “Dear Ruto: This is how Vladimir Putin dealt with the ruthless oligarchs in Russia.
You should do the same with the sugar oligarchies like Jaswant Rai. Show them no mercy, for they shall show you none,” stated Mutahi Ngunyi. Numerous Kenyans who responded online concurred with the analyst’s sentiment. Some even suggested that the president should apply the same uncompromising approach to other figures, such as Mandago.
Here are a few online reactions: Engineer: I concur with your viewpoint. In a similar vein, Ruto should handle Mandago and Jepchirchir with firmness. Why not explore alternative scholarships that can benefit a distinct group of deserving Kenyans? John: Let his actions speak louder than his words. However, it’s inappropriate for a president to publicly express his intent to send people to heaven (one understands the implications and the potential consequences). While some might comply, how many will be affected?
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The intricate network involving Rai, Pattni, and Akasha forms a convoluted tapestry of money laundering, political maneuvering, and corruption, entangling some of Kenya’s most influential and potent figures.
The apprehension of Yogesh Pattni, the Chief Executive Officer of Victoria Commercial Bank, has brought to light the shadowy business transactions connecting him to Jaswant Rai, the magnate behind a sprawling sugar empire, and Nurdin Akasha, a notorious individual affiliated with the Akasha criminal syndicate.
This narrative also unveils the manipulation that led to the downfall of Mumias Sugar, once a titan among Kenya’s sugar producers, orchestrated by these individuals and their cohorts.
The ongoing investigation by the Directorate of Criminal Investigations (DCI) promises to unravel further revelations in the coming days.
The destiny of Yogesh Pattni, Jaswant Singh Rai, Nurdin Akasha, and their associates implicated in this scandal teeters on uncertainty as potential charges loom over them, encompassing money laundering, arms trafficking, fraudulent activities, tax evasion, and assorted transgressions.
Moreover, this case has cast a spotlight on the responsibility of banks, regulatory bodies, and law enforcement agencies in curbing financial malfeasance and upholding accountability in Kenya.
Ultimately, the Rai-Pattni-Akasha nexus serves as an exposé, exposing the obscured underpinnings of Kenya’s political and economic structure.
Conclusion
In the realm of international finance, the shocking kidnapping of sugar oligarch Jaswant Rai sent shockwaves through the market. The Rai family reported his abduction on a fateful Saturday, highlighting the incident’s seriousness. The culprits forcibly took Rai on Friday, August 25, in the Kilimani area, an event captured on CCTV cameras on Wood Avenue in Nairobi. However, despite the footage, the exact circumstances remained enigmatic.
Fortunately, Rai was released on Sunday, reuniting with his family. Although shaken, he emerged physically unharmed, as confirmed by his lawyer. The Directorate of Criminal Investigations (DCI) pledged a thorough inquiry into the matter, yet the true nature of the event remains uncertain.
Jaswant Rai‘s stature as a sugar magnate and his connections within the political sphere have added layers of intrigue to the incident. The complex interplay of financial and political forces underscores the delicate balance between economic powerhouses and regulatory frameworks. This incident has thrust Rai into the spotlight, prompting a closer examination of his empire and its implications for Kenya’s economic landscape. And now he is released, which is a sign of relief.
