The government, which owns a 20 percent stake in Mumias, has offered the firm Sh3.5 billion in bailout funds over the last five years, but which achieved little.
MSC is technically insolvent to the tune of Sh6 billion after sinking further into losses that have seen its total liabilities surpass total assets.
The firm’s losses in the year ending June 2018 rose to Sh15.1 billion from Sh6.8 billion the previous period. It is yet to release the 2019 results.
Mumias Sugar Company (MSC) requires at least Sh5 billion for a smooth operational take-off, a task force has said.
The Kakamega county government team on the revival of the miller says the board is inept and wants a court appointed administrator to take over.
The administrator will be answerable to creditors, shareholders, and report to court.
In its report, which was presented to Governor Wycliffe Oparanya, the task force has proposed that the national government should identify and negotiate with an investor who can release the funds at once to jumpstart revival plans.
However, such an investor should not be Asian.