The Webuye Rai Paper Mill management has denied the factory stopped functioning after being launched by President Uhuru Kenyatta in December last year.
Speaking after taking journalists around the firm, manager Shankar Nagasripada said occasional stoppages were experienced but attributed them to the ongoing repairs as the facility is dilapidated.
The factory, formerly known as Pan Paper Mills, had been under receivership for 10 years. It is now managed by the Rai Group of Companies, which signed a Sh900 million sale and purchase agreement with the receiver managers. So far, only one line, out of the four, is working. According to the management, it will take about two years for the mill to regain its full capacity.
Most of the machines have to be replaced, he said. “We had some quality problems but we have rectified them. The roof sheeting was completely damaged. We are removing asbestos and replacing it with metal. We are now working on the pulp machine,” Nagasripada said. The manager said at the moment, the only operational line is producing brown paper from recycled paper, but upon completion of the other three lines, the production of paper from wood will resume.
He made the remarks when Bungoma Governor Kenneth Lusaka toured the factory to assess the progress on the renovation of the facility. The governor asked politicians to stop issuing ignorant remarks and sensational remarks about the mill. He said, “Pan paper had been down for more than nine years, therefore, there are a lot of renovations going on. We had severe vandalism of water pipes, which made the plant stop. After that they had to replace the roofs, but as you can see the mill is already running.”
So far, the Rai Paper management said about Sh24 million has been pumped into renovations. The investor projects that by the sixth year about Sh6 billion will have been spent on revamping the mill.
The governor told reporters the fact that smoke is not being seen from all the chimneys does not mean the factory is “dead”.
“People stand on the road as political tourists. They don’t come in to see what is going on then issue inflammatory statements and incite people that pan paper is not working,” Lusaka said.
He added, “I think as leaders we need to be realistic and tell people the truth, where things are working say it is working, where it is not working, say so.” The mill manager said the factory has employed 400 permanent workers and 200 on contract.
He said, “We are now producing brown paper. Tonnage is 50 to 60 tonnes per day. This paper is used in the packing industry, targeting the local market.” Speaking of the expected economic impact, the Bungoma governor said, “Unemployment is a real challenge not only in this county but the whole country. If you are employing about 400 people and the projection is to employ about 2,000 by the end of the year when all lines are working, then the county’s economy is bound to change.”
“We had landlords whose houses were unoccupied, but at least people working here will get housing in Webuye, our hotels will grow, women selling vegetables and other wares will benefit.”
Regarding the compensation of 300 workers who were laid off following the collapse of the factory, the governor said the Industrialisation and the Treasury ministries are working on the matter and have promised to expedite the process.