Rai Group Commits Sh3 Billion for Major Revival of Kenya’s Webuye Pan Paper Mill

Rai Group’s revival of Webuye’s iconic Pan African Paper Mill, now operating as Rai Pan Paper, has reached a critical phase with a Sh3 billion investment plan focused on sustainable growth and modernization. Since acquiring the shuttered mill in 2016, Rai Group has invested over Sh1 billion to repair machinery and upgrade facilities. The operation has created 450 direct jobs, mainly employing local youth, produced over 39,000 tonnes of paper, and paid substantial taxes while contributing to Kenya Power. The revival responds to challenges such as the government’s logging ban by shifting to recycling waste paper and bagasse. Despite market pressures and pandemic delays, plans are underway to expand capacity from 27,600 to 74,100 tonnes at a cost of Sh931 million. Officials urge political support and community engagement, emphasizing the project’s role in rekindling Webuye’s industrial and economic vitality. The long-term strategy includes replacing pulp and recovery units, awaiting further investment approval.

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