Struggling miller, Mumias Sugar Company, has asked for an additional Ksh 1.5 billion bailout from the national government.
Mumias East MP Benjamin Washiali on Wednesday told The Standard that the miller had sent a proposal to the National Treasury seeking funds that would muscle it out of its endless debt worries and return to profitability.
“The proposal is already with the Treasury Cabinet Secretary (Henry Rotich) and we expect that he will approve it,” said the MP.
Mumias Sugar Company Managing Director Nashon Aseka confirmed that the company needed Ksh 4 billion to comfortably get back on its feet as a top brand on the shelves of major retailers.
Mr Aseka had early this year indicated that it will take between three and four years to reach the full realization of the company’s five-year turnaround strategy if the cash was made available.
The sought after Ksh 1.5 Billion is targeted for investment in cane variety development and the miller maintenance costs as the miller struggles in competition with privately owned West Kenya and Butali.
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West Kenya Sugar Company has developed fast maturing varieties that it supplies to its contracted cane farmers to boost productivity and the general earnings for the company.
Most of its farmers grow the D8484 variety of that matures within 14 months. Other varieties with similar quick production rates include N14, Ken 83-737 and CO945.
The old day CO421 cane variety usually takes at least 18 months to be ready for harvesting.
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