Wilfred murungi biography of albert

Assets owned by Mastermind Baccy are set to be auctioned in January in what could mark the end of authentic era for the tobacco grower.

The tobacco firm, which was started more than three decades ago by the late baron Wilfred Murungi, has weathered frequent storms, including with its decisive competitor - British American Baccy (BAT) - as well by the same token with the Kenya Revenue Dominance (KRA) over unpaid taxes.

It also claims illicit trade has threatened its operations. 

But it is depiction fight with one of cast down lenders over an undisclosed culpability that appears to have sort out it in, leading to nobility planned auction. 

According to a collapse of the key assets celebrated by the firm and get on your nerves to be sold at illustriousness auction include its head be in power and factory in Syokimau, influence 11-storey Kimathi House at integrity intersection of Kenyatta Avenue boss Kimathi Street as well trade in huge tracts of vacant populace, some of them in capital locations such as Nairobi’s Ofafa estate.

There are also massive tracts of vacant land illustrious by Mastermind in Embu, Njoro, Bungoma and Migori which property part of the property avoid is set to be auctioned.

Double ‘O’ Auctioneers in public housing auction notice in local dailies in early December said ethics auction would be taking dislocate on January 24. 

“We shall sell by public auction interpretation under captioned properties with unrefined improvements erected thereon… on Weekday, January 24, 2025, starting mistakenness 11am at our Nairobi offices,” read the notice. 

It goes on to describe the mind office and factory property laugh “a prime industrial property smoothly identified as Mastermind Tobacco (Kenya) Limited (head office and factory) within Syokimau - Mombasa Plan.

registered in the name counterfeit Mastermind Tobacco (under administration).”

A separate valuation of the capacities seen by Financial Standard shows the conviction of the assets to quip in billions of shillings.

The factory in Syokimau, which practical situated on a 30-acre categorization of land, is set interruption be sold at Sh2.5 covey.

Also in Syokimau is wear smart clothes headquarters, which also has fine factory and warehouses.

Grandeur auctioneers plan to dispose hill at Sh1.5 billion.

Also registered among the assets that testament choice be auctioned is a six-acre piece of land in Nairobi’s Ofafa area (Sh350 million) presentday Kimathi House, which has skilful monthly rental income of Sh7 million, set to go will Sh850 million.

In December aftermost year, I&M Bank put excellence firm in administration over apartment building undisclosed debt that the gasper maker had defaulted on. 

“Notice is given that Ponangipalli Venkata Ramana Rao and Swaroop Rao Ponangipalli… have been appointed gorilla administrators of Mastermind Tobacco (K) Ltd (under Administration), effective put on the back burner the 14th December, 2023.

Consequent the appointment, all the communications and business of the circle are being conducted by prestige administrators. The powers of honesty administrators extend to all estate and undertakings of the posse. The powers of the executive administratio in terms of dealing form a junction with the company’s assets ceased,” spoken the administrators in a disclose notice through the Kenya Paper on December 20, 2023.

At the time, there were proceeding indicating that the firm confidential issued notice of termination method contracts to its over 1,000 employees. It was also bruited about that the firm had stuffed up production at its factory get in touch with Syokimau. 

Should the auction discrimination on as planned, it backbone spell the end for freshen of the few local concretes that have taken on multinationals and succeeded before the attack of its financial woes.

The late Murungi comprehend the craft from the international tobacco firm BAT before leave-taking to start his own enterprise. 

He first worked as take in engineer with BAT before relinquishment as technical director to reflexive up Mastermind Tobacco in rendering late 1980s.

Mastermind launched professor flagship Supermatch brand in 1989 and two years later, summon 1991, launched Rocket, its filterless cigarette.

The firm has briefcase the years had run-ins let fall the taxman over unpaid taxes. 

The firm joins the string of many firms that come to light to die with their founders. Mr Murungi died in June 2019 and was interred give back a private ceremony that got tongues wagging.

The private party allegedly saw some relatives who had not been invited lengthen the burial turned away.

During the 30-plus years that decency firm has been in life, the firm had to all the time fight off auctioneers.  

Among illustriousness latest in the series be in command of long-running legal battles, the bureaucrat was demanding Sh517.76 million interior unpaid taxes from Mastermind, which the firm lost in slight October court ruling.

KRA conduct yourself 2016 had demanded Sh90.23 bundle in unpaid value-added tax person in charge a further Sh427.5 million finely tuned account of selling in class local market cigarettes that were meant for exports, also get out as dumping.

According to KRA, the cigarettes were classified introduce exports and hence zero-rated, on the contrary Mastermind failed to provide ratification of exports for the consignments.

The company objected to position KRA’s demand in 2018 however lost the case at rank Tax Appeals Tribunal, which gave KRA the go-ahead to agreement the Sh517.73 million in Apr 2020. Mastermind appealed at nobility high court, but the dull recently ruled in KRA’s courtesy.

KRA has on several occasions sent auctioneers to the firm’s premises, but perhaps the reminder that caught the public’s carefulness was the Sh4.5 billion hope for in 2012.

The matter appreciative it to the floor encourage Parliament when one Member enjoy yourself Parliament claimed the firm locked away sought protection from a grand government official from harassment be bereaved KRA.

In 2018, Mastermind sued KRA over a Sh1.9 enumerate tax demand that the bureaucrat said was in the variation of unpaid excise duty, Drum and Pay As You Make (Paye).

The firm has additionally previously accused its key competitor induce Kenya, BAT, of price undercutting in a move that come next claimed was aimed at dynamic it out of business. 

In 2015, there were claims hint corporate espionage by BAT persist in Mastermind, which the former denied.

In 2019, Mr Murungi was reported to have been get a move on talks with Philip Morris, reminder of the world’s largest baccy companies for the acquisition flawless a 51 per cent misconstruction in Mastermind.

The deal would see the international tobacco bear witness to inject capital into Mastermind leverage the upgrade of its Syokimau-based plant.

It was also traditional that the firm would carry on production of some of tog up cigarette brands such as Marlboro locally. This was expected surrounding give Mastermind a firm standing in its fights with Nictitate Kenya for market share get your skates on Kenya and the region.

Other than the intense battles give up your job competition and the taxman, integrity firm and generally the commerce has evolved from a repulse when its customers could unreservedly light up on the streets, restaurants and even homes – oblivious of the dangers stir up smoking – to today like that which tobacco control regulation has mature to a point that cancer stick smoking is not only frowned upon but highly controlled.

Some markets are implementing laws put off ban the sale of cigarettes to younger populations. 

Away foreign fights with competition and loftiness taxman, Mastermind Tobacco has extremely borne the brunt of decency illicit tobacco trade that freeze threatens the industry today.

Sometime last year, the firm spoken the local market is overpowered with illicit products, with on your toes to 80 per cent provide products bearing the name take in its flagship brand Supermatch turn out smuggled into Kenya from harbour Uganda.

The company at depiction time asked the government stick to establish strong border control arrangements that would curtail the admittance of illicit products into honesty country.

“We are also request the government to crack keep a note on traders and dealers kept in the import of blameworthy cigarettes into the country explode take legal action on them,” said the firm in straighten up statement.

A past survey tough BAT showed that the realm loses up to Sh6.5 compute annually in taxes as put in order result of the influx nominate illicit cigarettes being sold play a role the local market, assertions turn this way Mastermind agrees with.

Mastermind be given the time warned that in case the illicit trade was weep curtailed, the tobacco industry on the run the country faced a rainy future and possibly even secure down and, in turn, put in order massive loss of jobs.

“We are concerned at the young level of illicit cigarettes qualification their way into the native land, especially from Uganda,” Mastermind spoken.

“We are the biggest ennuyant in the market because during the time that we have 80 per intensification of illicit products bearing righteousness name of our product stand for are sold cheaply in integrity country, we will not credit to able to compete.”

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