Agriculture Secretary Mwangi Kiunjuri. FILE PHOTO | NMG
Agriculture Secretary Mwangi Kiunjuri says he is forming a committee to revive Mumias Sugar Company
.
He also announced plans to write off Sh38.5 billion in debts owed by
various companies to pave way for the privatisation of the State-owned
sugar millers.
The move to waive debt is one of the
resolutions seeking to revive the ailing State-owned factories like
Miwani, Chemilil, Nzoia, Muhoroni and Sony.
Mr
Kiunjuri, who was speaking during sugar stakeholders meeting, said the
public mills have been surviving on loans and this had rendered them
uncompetitive.
“By the time the President ordered we pay farmers in October,
Chemelil Sugar, for example, owed us Sh210 million in November which has
now accumulated to Sh271 million. Nzoia too owed us Sh231 million,
Mumias (Sh400 million), Sony (Sh168 million) and Muhoroni (Sh229
million).
“Muhoroni Sugar Company is requesting an
injection of Sh500 million from us. Sony Sugar has also been surviving
on loans. In fact, they are closing next week for maintenance which
requires Sh281 million.”
It wasn’t clear for how long
these debts have been in existence, but the five millers have been
performing poorly for the last decade. They have run into debts and are
bogged down by old machinery. They have also failed to compete with
cheaper imports.
The resolution to have a special
committee to look into the issues of Mumias came after political leaders
questioned the validity of land ownership by the company.
Although
legislators and governors from the sugarcane belt agreed to privatise
the mills, the issue of land ownership remains sensitive and it needs
future discussions.
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