Light has started appearing at the end of the tunnel for the cash strapped Mumias Sugar Company after the government released Sh1 billion towards the revival of the Mumias Sugar Company.
The cash was released after Members of Parliament from the Western region paid President Uhuru Kenyatta a courtesy call at State House today.
The meeting discussed a four-point turnaround strategy for Mumias which includes the appointment of a professional management team, injection of funds based on a viable plan, undertaking a rights issue to raise between Sh3 billion and Sh4 billion, and rescheduling of debts the company owes financial institutions, Business Daily reports.
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President Kenyatta said the decision to release funds towards the recovery of the key sugar company was based on the government’s commitment to supporting cane farmers and not politics.
“We are keen on reviving the sugar company because we know it will benefit farmers. We strongly believe that it will support the economy of Western region. This has nothing to do with politics,” he said.
The president said the funds will help to turn the company around into a profit making venture that would benefit not just cane farmers but also boost the economy of the western region. The meeting was also attended by Deputy President William Ruto, National Treasury Cabinet Secretary Henry Rotich and his Interior counterpart Joseph Nkaissery.
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