In Summary
  • With reports that the government was contemplating putting Mumias under receivership, Ms Mkok said this is not one of the options they were considering although Sunday Nation learnt the matter came up in one of the board meetings.
  • To help put Mumias on the path to recovery, Ms Mkok said the government had released Sh903 million to off-set farmers’ arrears and also support cane development.

Mumias Sugar Company has called an annual general meeting to discuss its dwindling fortunes.

A notice by the company secretary Amuhaya Barasa inviting members to a meeting on December 6 at the Tom Mboya Labour College in Kisumu lists audit and financial reports as some of the key items for discussion.

This comes amid fears that the firm may take longer to reopen its milling plant that was closed down in October for maintenance amid a shortage of cane for crushing.

Having declared a net loss of Sh2.7 billion in the last fiscal year, the company cannot repay its debts, which amount to Sh5 billion.

The situation, in part, led government to licence at least 10 companies to import sugar.

“The market conditions that have necessitated this adjustment include the below-par performance of Mumias Sugar mill resulting into its unscheduled closure in October 2014 for early maintenance as they allow build-up of raw material,” the interim boss of the Sugar Directorate Rosemary Mkok told Sunday Nation of the decision to issue licences to importers.

Three other factories — West Kenya, Kibos and Soin — have also closed for maintenance.

UNDER RECEIVERSHIP
With reports that the government was contemplating putting Mumias under receivership, Ms Mkok said this is not one of the options they were considering although Sunday Nation learnt the matter came up in one of the board meetings.

“Instead, a feasible turn around strategy is under consideration and will be shared once firmed up,” she said.

Page 1 of 2