The PanPaper mills in Webuye, Bungoma County. FILE PHOTO | NATION MEDIA GROUP
Bungoma County is betting on the revival of Pan African Paper Mills to breathe life into the sleepy Webuye Town.
The
urban centre was once the lifeline and economic hub of the region but
its fortunes took a beating when the factory’s operations ground to a
halt.
Bungoma Governor Ken Lusaka said reopening of the
paper mill would provide a source of employment and revenue by
revitalising the local economy.
“This (pan paper revival) will awaken Western region’s massive economic potential, creating job opportunities,” he said.
“This (pan paper revival) will awaken Western region’s massive economic potential, creating job opportunities,” he said.
Mr Lusaka acknowledged that it would take some time before the firm realises its full potential once it starts operations.
He said the county government is committed to providing the necessary support to ensure the revival succeeds.
He said the county government is committed to providing the necessary support to ensure the revival succeeds.
“While
Pan Paper’s capacity may not match the level it used to enjoy before it
collapsed, I strongly believe it will be totally on track in less than
five years,” Mr Lusaka said.
“We will do everything
possible to ensure the revival succeeds. This will range from
infrastructural development, relaxation of any bureaucratic processes
such as getting necessary permits or certificates.”
Former employees are also optimistic of resuming work after being in the cold for over eight years.
Mr
Wellington Khaemba, a former staff, said the management had already
contacted them and provided modalities of how they would resume their
respective duties.
He said many employees are hoping to
get back to work while others are looking to be paid their benefits
that had accrued before the mill collapsed.
Strategic investors
Tarlochan
Limited, a subsidiary of Rai Group of Companies and the new strategic
investors, took over the company following the signing of a sale and
purchase agreement between the company and receiver managers.
Speaking
during the handover ceremony in Webuye in May this year, Rai Group of
Companies Chairman Jaswant Rai, said they were committed to the revival
of the company with focus on paper production.
Mr Rai
said they had projected to inject close to Sh6 billion into the company
in the next 10 years to rehabilitate and revive old machines.
“The
handover process provides an opportunity for us to re-asses the plant
and equipment. From our initial assessment, most of the critical
machinery will require total replacement and technological upgrades to
ensure that we can start operations within this calendar year,” said Mr
Rai.
He said he was not after a timber licence as
alluded to by a section of leaders. “We are not interested in the timber
licence as claimed by certain people. Why should we pay Sh900 million
just to acquire a timber licence?” said Mr Rai.
Bungoma residents are optimistic that the revival plan would create jobs and improve living standards.
The miller is expected to employ about 1,500 employees once they start running.
The miller is expected to employ about 1,500 employees once they start running.
Businesses
that depended on the miller are also lining up to have a share since
many small scale ventures collapsed with the closure of the plant,
especially in the transport, accommodation and hospitality sectors.
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