Mumias to get Sh1bn bailout on Wednesday

Agriculture committee member Benjamin Washiali (left) with MP Millie Ojiambo addressing a press conference on sugar importation on November 4, 2014. The Mumias East MP said they were assured that the money will be given. FILE |  NATION MEDIA GROUP

In Summary

• “The government will release Sh1 billion to Mumias Sugar Company on Wednesday, next week, to help revive the cash-strapped sugar firm,” Mr Washiali said.
• According to Mr Washiali, the western parliamentary caucus will meet President Uhuru Kenyatta to request him to hand over the cheque to Mumias Sugar management in person, next week.

By NATION CORRESPONDENT
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Debt-saddled Mumias Sugar company will get Sh1 billion bailout package on Wednesday.

Leading a delegation of MPs from the region to Deputy President William Ruto on Thursday, Mumias East MP Benjamin Washiali said they were assured that the money will be given
.

“The government will release Sh1 billion to Mumias Sugar Company on Wednesday, next week, to help revive the cash-strapped sugar firm,” Mr Washiali said.

The giant sugar miller currently owes farmers and workers millions of shillings. It has since ceased production of sugar.

Last week, Mumias Sugar managing director Coutts Otolo said that the company might not resume business unless it receives the Sh1 billion bailout.
Mr Otolo added that critical equipment needs to be replaced for the miller to crush at least 7,000 tonnes of cane per day.

At the moment, only 700, 24-pack cases of bottled water and 72,000 litres of ethanol are being produced per day.

“The problem at Mumias is historical. We inherited huge debts owing to diversified projects. We are worried that the situation at the firm has forced some farmers to abandon cane growing,” said Mr Otolo.

Yesterday, Butula MP Boniface Otsula said Mr Ruto assured them that the funds would be wired into the accounts of the ailing miller.
“He said the government was keen on bailing Mumias Sugar out of its financial doldrums.”

According to Mr Washiali, the western parliamentary caucus will meet President Uhuru Kenyatta to request him to hand over the cheque to Mumias Sugar management in person, next week.

DATE WITH PRESIDENT

“We have a date with the President with a sole purpose of convincing him to grace the occasion.”

Mr Otsula said leaders from Western Kenya will not allow Mumias Sugar to go under as it happened with Webuye Pan Paper Mills.

“It is our desire as legislators to drive the economy of our region forward,” said Mr Otsula.

Mr Washiali said the funds must be spend on clearing millions of shillings owed to farmers for cane deliveries made to Mumias Sugar company.
“We shall ensure farmers are paid all their dues once the money is released.”