Mumias sugar back on table as miller resumes production.
Kakamega Senator Boni Khalwale confirmed on Friday that the previously troubled miller has resumed operations after a new investor took charge.
“Today I've spent 3hrs internalising the state of affairs at Mumias Sugar Company. I'm satisfied that the new investor, Sarbi Rai, deserves support for his efforts for its revival,” Khalwale said in a statement on Twitter.
He said the company has hired 800 new employees with plans to push the number to the maximum staff capacity of 5,000 employees.
The once prosperous sugar company that was listed at the Nairobi Securities Exchange in 2001 went under after defaulting on loans, accruing huge power bills and tax arrears.
The company reported a net loss of Sh15.10 billion in the 2018/19 financial year against the previous year’s loss of Sh6.80 billion.
This was despite the firm receiving a Sh3.70 billion bailout from the national government.
Mumias Sugar was placed under receivership in September 2019 by KCB, one of its creditors.
The miller owed the bank over Sh500 million forcing it to appoint an administrator in a bid to recover the money.
In his report dated June 4, 2021, the receiver manager, Pongangipalli Venkata Ramana Rao, said the factory had an asset base of Sh15.7 billion and Sh30.1 billion in liabilities.
