Kakamega Senator Boni Khalwale on Friday, November 11, confirmed that Mumias Sugar Company resumed operations after a new investor took charge.
The company cited as a bedrock of Western Kenya, offers hope to thousands of jobless youth and farmers who shifted to maize farming after its collapse.
“Today, I have spent three hours internalising the state of affairs at Mumias Sugar Company.
“I’m satisfied that the new investor, deserves support for his efforts in the revival of the company,” Khalwale announced.
He further disclosed that the company hired 800 new employees and planned to increase the number to 5,000.
Mumias Sugar collapsed after defaulting on loans, accruing huge power bills and tax arrears.
The miller reported a net loss of Ksh15.10 billion in the 2018/19 financial year against the previous year’s loss of Ksh6.80 billion despite the firm receiving a Ksh3.70 billion bailout from the national government.
It would later be placed under receivership in September 2019 by one of its creditors.
The miller owed over Ksh500 million, forcing it to appoint an administrator in a bid to recover the money.
Receiver manager, Pongangipalli Venkata Ramana Rao, stated in June 2021 that the factory had an asset base of Ksh15.7 billion and Ksh30.1 billion in liabilities.
During the campaign trail, Deputy President William Ruto promised to revive the struggling company guaranteeing its revival within three months after winning the August 9 election.
Ruto blamed President Uhuru Kenyatta and his handshake partner, Raila Odinga, for the economic decline.
“The Kenya-Kwanza government will clear all the debts facing the Mumias Sugar company in three months. We will also invest Ksh5 billion to build a modern sugar company in the Western region,” he stated
Mudavadi in the past called for a review of the taxation structure in the sugar industry to ensure it is attractive to investors and farmers.
Source: kENYANS.CO.KE
