Kinyara Sugar Works Limited
|Industry||Manufacture & Marketing of Sugar|
|Headquarters||Kinyara, Masindi, Uganda|
The main factories of the company are located in the town of Kinyara, in Masindi District, Western Uganda. Kinyara lies approximately 15 kilometres (9.3 mi), by road, west of Masindi, the nearest large town. This location lies approximately 230 kilometres (140 mi), by road, northwest of Kampala, the capital of Uganda and the largest city in that country. The coordinates of Kinyara Sugar Works Limited are:+1° 38' 7.80"N, +31° 36' 19.80"E (Latitude:1.635500; Longitude:31.605500). In addition to the factories at Kinyara, the company maintains a corporate office in Kampala and warehouses, in Kampala and Masindi.
KSWL is the second-largest manufacturer of sugar in Uganda, producing an estimated 110,000 metric tonnes annually, accounting for approximately 31% of national output. Kakira Sugar Works, located in Kakira, Jinja District, is the nation's largest sugar producer, accounting for approximately 47% of national output. Sugar Corporation of Uganda Limited (SCOUL), located in Lugazi, Buikwe District, produces about 60,000 metric tonnes, about 17% of national output. Uganda's fourth-largest sugar producer is Sango Bay Estates Limited, producing 15,000 metric tonnes annually, accounting for about 5% of total ouutput in Uganda in 2011. The estimated 350,000 metric tonnes of sugar produced by the four leading sugar manufacturers in Uganda is marketed to the Eastern African countries of Burundi, Democratic Republic of the Congo, Kenya, Rwanda, South Sudan, Tanzania and Uganda.
In the late 1960s, the Government of Uganda, established a sugar plantantion and factory at Kinyara, just outside the town of Masindi in Masindi District. During the political and economic turmoil in Uganda in the 1970s and 1980s, Kinyara was adversely affected and production of sugar ceased. In the 1990s KSWL was rehabilitated by Booker Tate limited with aid/loan agreements for various funders underwritten by the Ugandan government. Sugar production resumed in 1995. Following the resumption and stabilisation of sugar production the government sold 51% shareholding in Kinyara Sugar Works Limited to the Rai Group, a Mauritius-based investment group. KSWL has recovered and the Ugandan government is planning to divest the remaining 49% it ows in the enterprise, by floating its shares in an IPO on the Uganda Securities Exchange.
In September 2011, the Uganda government sold a further 19% shareholding in KSWL to the Rai Group for US$9.1 million in cash. The sales agreement calls for the Rai Group to float the 19% shareholding it has just acquired in an IPO on the Uganda Securities Exchange after five years. Previous agreements call for the sale of the remaining 30% shareholding to the following entities: (a) 10% to the Omukama of Bunyoro (b) 10% to the KSWL outgrowers and (c) 10% to the KSWL employees. That process is ongoing.