Mumias Sugar Company owes the Busia County Government over Ksh70 million in cess arrears since the inception of county governments in 2013.
Teso North Sub County Revenue Officer Theophilas Chitechi revealed this during a County Revenue Enhancement Strategy workshop at Hotel Levantes in Amagoro.
He said the company has shown no signs of clearing the debt hence the county authorities should intervene urgently as it is significantly affecting the budget.
“The last time the company made a down payment of Ksh3 million was in 2014 after Governor Sospeter Ojaamong wrote to its management We are appealing to our governor once again to make a communication to the management of the sugar company so that it can clear the debt despite the financial challenges bedeviling it,” Chitechi said.
Related: Mumias Sugar troubles deepen with Ksh6bn loss
The County Executive Committee Member for Finance Leonard Obimbira told the workshop that it has not been easy for the county government to recover the debt from the sugar company.
“We hope to open a new chapter and begin talks with the sugar company to harmonise the relationship between the two institutions,” he said, adding that the county administration would have preferred to recover everything first and begin on a clean sheet.
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