Surrender Mumias stake to county, Barasa urges state

Kakamega Governor Fernandes Barasa has urged President William Ruto to initiate a process of transferring national government's 20 per cent shareholding in the struggling Mumias Sugar Company to the county government. 

Barasa said passing on the shares to the county government will give it a chance to represent cane farmers in decision making by the company.

The National government shareholding remains the commanding share in the company. 

"I want to urge our farmers to go back to the farm and plant sugarcane to ensure uninterrupted supply of raw materials to Mumias. Currently there is an agreement that will see every farmer earn Sh4,450 per tone, once cane is delivered to the miller. The payment will be made weekly, " the governor said. 

Barasa said revival of the once premier sugar firm in East and Central Africa was critical to the economies in Western counties, especially Kakamega. 

The governor was speaking during the homecoming ceremony of East Wanga MCA Francis Washika at Khabondi Primary School grounds on Saturday. He was accompanied by his deputy Ayub Savula and a host of MCAs. 

The company announced on Thursday that it had resumed milling sugar after close to three years of closure. Factory operations manger Stephen Kibumba said the company had re-hired 500 of its former employees in the production sector.

The company had 2,100 workers by the time it went under. 

He said the company was currently relying on supplies from farmers as it works on rehabilitating its own nucleus estate.

Barasa said he had held talks with the receiver management and agreed that residents should be given priority when opportunities arise, adding that the county leadership will not allow the receiver to bring in people from Uganda to work at the factory.

The company was placed under receivership by the Kenya Commercial Bank group over unredeemed debentures in September 2019.

KCB leased the miller to Uganda-based Sarrai group to revive it. 

Savula said farmers have lacked a platform to make their input in decisions made by the company board yet the decisions affect them directly or indirectly. 

"Once the shares are passed to us as the county, we shall have representation on the board of the sugar firm, and have a say on decisions that will be made," Savula said.

Barasa said he will ensure all incomplete projects started by his predecessor Wycliffe Oparanya are competed. 

He named completion and operationalisation of the Sh6.2 billion Kakamega Teaching and Referral Hospital in partnership with the national government, completion of upgrading of Bukhungu Stadium to international standards and completion of the Malava milk processing factory as some of the projects.