Kakamega Senator Cleophas Malala has asked the county assembly to take up the revival of the cash-strapped Mumias Sugar Company.
He said the House Industrialisation, Agriculture, Labour and Social Services committee should protect all sugar companies in the county and treat it as a matter of urgency.
“The county government should position itself to lease the entire Mumias Sugar Company Land under Nucleus Sugarcane and develop the cane while acting as a legal trustee of public land as well as guaranteeing the production of sugarcane for the miller,” he said in Kakamega on Thursday.
Malala said the county should move with speed and engage the national government, the Kenya Revenue Authority and the Capital Markets Authority with a view to taking over the 20 per cent shares held by the state.
Two months ago, Oparanya announced a takeover of the company by his administration, but the CMA warned such a move would be illegal as Mumias is a listed private company.
On Thursday, Malala appealed to the national government to waiver the Sh10 billion the company owes to KRA. He said the imminent collapse of the sugar sector in the county threatens the local economy. For decades, cane farming has been a major livelihood for not just the residents of Kakamega but all of Western.
Recommendations by the sugar sector task force appointed by President Uhuru Kenyatta have yet to be made public. The task force was co-chaired by Agriculture CS Mwangi Kiunjuri and Kakamega Governor Wycliffe Oparanya.
Another task force formed by Oparanya for the revival of the once premier mill in the East African region has finalised its findings but has yet to present its recommendations.
The company has not been crushing cane for over a year now because of billions of debts owed to suppliers and statutory agencies. It also suffers acute cane shortage blamed on poaching by rival mills.
(Edited by F'Orieny)
