Treasury is still holding onto the Ksh1 billion bailout cash promised to Mumias Sugar Company, two weeks after President Uhuru Kenyatta officially presented the cheque to the company’s management.
Mr Dan Ameyo, Mumias Sugar Company chairman, yesterday told Business Daily that the sugar miller urgently requires the money to pay farmers and repair the factory. “We want the money as urgently as possible to address a number of challenges that we are currently facing,” he said, adding:
“Honestly, I cannot tell why it has taken long for the funds to be released, I do not have any information regarding that.”
Acting Agriculture Cabinet Secretary Adan Mohamed, talking to Business Daily, said the funds were to be released shortly after presentation of the cheque. He said he was not aware that the miller had not received the money.
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He said he would follow up on the matter with his Treasury counterpart, Henry Rotich, to find out when the funds would be released.
Mumias requires the funds to finance repairs of its pipes and boilers, which have affected production of sugar.
The Ksh1 billion bailout was part of the company’s rescue plan that the government, as an anchor shareholder with a 20% stake, promised to give the miller to facilitate its revival.
President Kenyatta wants Mumias Sugar to prioritise payment of farmers’ dues.
The Nairobi Securities Exchange- listed firm owes growers Ksh600 million, meaning that the company will only have a balance of Sh400 million to spend on maintenance and other creditors.
It requires an additional Ksh4 billion to lift itself out of the financial mess and expects to raise the money through a rights issue. The company owes farmers, banks and other creditors about Ksh6 billion.
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