Mumias Sugar Company has finally received the Sh500 million bailout money promised by the government before elections.
President Uhuru Kenyatta and his Deputy William Ruto had on August 1 pledged to revive the ailing sugar factory in Kakamega County as they sought votes from the region.
The two leaders had already demonstrated the desire to revive industries by extending Sh3.2 billion to the miller to make it remain afloat.
POLITICS
The firm’s corporate manager, Mr Moses Owino, said the money took time due to logistical issues.
The firm’s corporate manager, Mr Moses Owino, said the money took time due to logistical issues.
“There were several things about the whole thing including the spending account, bail account and signatories. The company was running several accounts,” Mr Owino said.
He added: “When the money was released to the company, there was a lot of politics but now we have the money.”
DEBT
An insider privy to the information however told Business Daily that the money had initially been held up by one of the banks owed money by Mumias Sugar.
“When the cheque came, the managing director, Nahashon Aseka, directed the money to (one of the banks.) The company’s board however referred the matter back to the Treasury to help them negotiate with the bank,” the source said.
CANE SHORTAGE
Mumias Sugar was actually under pressure from creditors for unpaid loans and farmers for unpaid delivered cane.
The miller currently owes farmers about Sh1 billion.
The company has been struggling with debts, ageing equipment and cane shortage despite a Sh3.6 billion government bailout over the last four years.
