Kakamega Governor Wycliffe Oparanya has called for the removal of Mumias Sugar Company management from office over poor performance.
Oparanya accused the company’s managing director Peter Kebati of poor management, which he said has opened avenues for corruption at the once vibrant sugar producer and threatening its survival.
Speaking yesterday at a fundraiser towards the construction of Bungasi ACK church in South Wanga, the governor promised to lead a mass demonstration to the factory to eject non-performing managers from office.
He called on sugarcane farmers in Mumias sugar zone to join and support him in the demonstration. Oparanya said unless the management is restructured, the company is headed to close its doors.
“Mumias is the mainstay not only of Kakamega county but the whole of Western region and beyond. Its closure will impact negatively on this region. That is why I am calling on everybody to join me in saving this factory from collapse,” he said.
Farmers contracted to Mumias are faced with late payments and debit returns on their cane with some demanding payments from April. A fortnight ago during a stakeholders meeting, three MPs Ayub Savula (Lugari), Johnson Naicca (Mumias West) and Ben Washiali (Mumias East) and Kakamega Senator Bonni Khalwale accused Kebati of mismanaging the country’s leading sugar producer and condemned him for leading the factory to incur a loss of more than Sh1.6 billion in the last financial year.
“Why should the company spend more than Sh870 million on advertisements and marketing and make a loss of Sh1.6 billion?” Washiali said. Yesterday, Oparanya said the company loses a lot of money by outsourcing services that can be offered by the permanent employees.
He reiterated the need for the company to appreciate cane farmers saying they hold the livelihood of the factory even if they are not shareholders.
“Despite Mumias relying solely on sugarcane as raw materials for its operations, the management has neglected the welfare of the cane growers and focused on contracted services which are paid for exorbitantly” Oparanya said.
He gave Kebati the alternative of revitalising the factory to its initial operating level by addressing key grievances raised by various stakeholders including abolishing of contracted services or face the wrath of concerned stakeholders.
Kebati said at the meeting that they have initiated a ‘Rudi kwa wakulima’ concept to revamp the factory and win back farmers’ confidence. “This company is a regional asset and bigger than any one of us. We should all get concerned whenever things don’t move in the right direction and correct where appropriate,” he said.
Kebati said cane poaching and importation of cheap sugar is a major blow to survival of existing factories, which have invested in cane development.