In summary
-The Rai empire was built by the family’s patriarch, Tarlochan Singh Rai who acquired valuable assets at throwaway prices in the wake of DRC’s independence.
-But following the death of Tarlochan, there was a fierce succession war that eventually split the family. And the rift was also geographical – Jaswant Rai took over the Kenyan market while his younger brother, Sarbjit built an empire in Uganda in the name of Sarrai Group.
-In 2023, the aggressive fight to take over Mumias Sugar Company served as a microcosm of a decade long feud. It is a matter that irked President William Ruto, as the siblings’ battle stood in the way of the state’s interests. Ruto’s infamous “mambo ni matatu” remark forced Jaswant to withdraw the barrage of lawsuits that had prevented Sarrai Group from taking over Mumias Sugar.
The Rai Empire
In the wake of independence in DRC, Tarlochan Singh Rai saw an opportunity in adversity. While Belgian settlers were fleeing the country amid the political volatility, he saw an opportunity to build a generational empire.
Tarlochan migrated from India to DRC (then Zaire) and acquired distressed agricultural assets. He bought tea and coffee estates – which were valuable assets at low prices. In the 1970s, he spread tentacles into Kenya by specialising in manufacturing of tea chests for his produce. He also ventured into the lucrative sawmilling industry.
Family
Tarlochan Singh Rai was married to Sarjij Kaur Rai with whom he sired five sons named Tejpal (deceased), Jaswant, Jasbir, Sarbjit, and Iqbal Rai and two daughters Hertej Ashwin Oza and Daljit Kaur Han. Prior to his death in 2010, Tarlochan Rai had amassed a multi-billion shilling wealth portfolio with investments in various industries and close relations with the country’s ruling administrations. Jaswant Rai was left as his father’s will executor and chairman of the Rai Group.
Brutal fight for the multibillion estate
After their father’s death, Jasbir and Iqbal Rai teamed up with their mother against their brother Jaswant who held the chairman position of the group. He was additionally named the executor of their father’s will which was written in 1999. The late Sarjij Rai and her two sons were of the opinion that the will had been written in coercion and did not represent the true picture of the patriarch wishes. Jaswant on the other hand defended his father’s will saying that it stipulated that all his eight beneficiaries would receive a rightful stake in his wealth.
Court Cases
The late Sarjij Raj and her two sons went to court to demand that her son Jaswant and the Group’s board of directors be compelled to reveal all the board minutes, asset listing, and their father’s will. This is because they believed that Jaswant had excluded some of the properties from the will leaving his siblings receiving less than they should have received.
Most of the properties alleged to have been left out of the will are foreign companies and investments in which the late Tarlochan had shares. These include Cayman Islands situated Waterloo Ltd and Stonybrook Ltd, Jersey Island-based Rai Management and Technical Services Limited, and millions of dollars in London and New Delhi banks.
The court determined that the will’s validity would first need to be established before any further action would be taken.
Sarbjit Rai vs Jaswant Rai
Meanwhile, the feud forced Sarbjit Rai to break away from the family’s empire and chose to establish the Sarrai Group in Uganda. This rift exposed the family’s dark side when Sarrai Group and the West Kenya company fought for the Mumias Sugar lease.
The Sarrai Group won the lease, but Jaswant Rai did not want to lose out on the control of this strategic asset. He filed an avalanche of suits accusing his brother’s company of lack of a track record and stripping and vandalising of Mumias assets. He also said that he had submitted a larger bid of up to Ksh 36 billion.
While Jaswant Rai had long been portrayed as a man who could influence politics and even orchestrate some form of ‘state capture,’ this time round, he was in for a rude awakening.
President William Ruto was reportedly angered by the flood of lawsuits which had stalled the government’s interests.
In a chilling remarked, he declared: “mambo ni matatu; uhame, nikupeleke jela au usafiri mbinguni.”
Following this cold remark, and a reported abduction of Jaswant Rai, he was forced to file notices to withdraw all pending cases.