Rai yet to get forest licence in PanPaper revival plan

The billionaire Rai family is yet to receive the necessary State nod to exploit public forests, delaying full operation of the PanPaper Mills factory that closed shop in 2009.

Industrialisation Cabinet Secretary Betty Maina told Parliament that the Rai Group of Company was to obtain the Kenya Forest Service licence, which is a mandatory requirement in the Sales and Purchase Agreement.

She said the Rai Group had requested for a licence of 36 years to exploit the public forests for raw materials for both fuel and pulp wood.

“The long term licence amounted to concessioning which required the necessary government legislation and parliamentary approval which have not been fully exhausted by the company,” Ms Maina told the Senate Environment committee.

She said there were also some pending royalties for payment to the Kenya Forest Service before the company commences its operations.

Ms Maina said for the factory to resume full operations, it will require the Rai family to requisition and acquire the approval of all relevant government licences as well as parliamentary approval on issues to do with environmental management, forest royalties and concessioning for supply of pulpwood and fuel wood.

“The turnaround of Pan Paper Mills (renamed Rai Paper Mills) must be based in sustainable forest and environmental management,” Ms Maina said.

She said Pan African Paper Mills was not sustainable in its resource management and environmental pollution.

“It benefited immensely from government forests. They never considered developing aggressive reforestation programme, which also contributed to its collapse,” Ms Maina said.

She said going forward, it would require the Webuye based factory to invest in aggressive paper mills technology, have an aggressive reforestation programme and environmental management strategies.