In Summary
  • Mumias Sugar had in April declared plans to lease seven key properties.
  • The miller later suspended the plan amid opposition from the region’s political elite.
  • Kakamega Governor Wycliffe Oparanya said the county will not let individuals sabotage plans to revive the ailing miller.

The recovery strategy for debt-ridden miller Mumias Sugar Company is in limbo after cancellation of a lease plan to raise capital last week.

And the entry of the Kakamega County governor with the intention of forming a committee to take over millers has been received with a pinch of salt.

Mumias had in April declared plans to lease seven key properties through an open tender, but suspended them amid opposition from the region’s political elite.

The properties included Mumias Sports Complex that has a football stadium, restaurant and pub, the nucleus sugar estate, the new modern office block, the Booker Academy Schools and the Mumias Sugar Housing estate and Supermarket.

Others targeted in the aborted lease were the modern water bottling plant within the factory premises and its 34.2 megawatts cogeneration plant.

“This is to inform the general public that the expression of interest that was advertised in the Daily Nation on April 30 has been suspended until further notice,” Mumias Sugar said last week.

The amounts Mumias Sugar stood to raise through the leases remain undisclosed, as calls to board of directors chairman Kennedy Ngumbau went unanswered.

With the Treasury silent on resuscitating the sugar cane-starved miller and opinion split on the sector’s revival, the once success story of Western Kenya is now facing survival a threat.

In what points to fights over the leasing plans, Kakamega Governor Wycliffe Oparanya said the county will not let individuals sabotage plans to revive the ailing miller.

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