- The national government owns 20 of share in the troubled miller
- Last month, KCB appointed a receiver manager to handle the shut factory
Image: HILTON OTENYO
The national government plans to offload it's shareholding in the troubled Mumias Sugar company to the county government, Deputy President William Ruto has said.
"We have agreed as the national government and told the county government that we're in the process of surrendering the shares we hold to them so that together with other county stakeholders they can find a lasting solution," he said.
The national government owns 20 of share in the troubled Miller.
National Treasury has pumped Sh3.7 billion in its turnaround strategy that failed. The move to transfer the shares will be a big boost to efforts by the county government towards revival of the miller.
The decision will give the county government representation on the board where decisions are made.
Ruto said the county government had presented a turnaround plan and should be given a chance to play a major role in the company.
Ruto added that the national government had done enough towards the revival of the company and it was time another method was adopted.
“We brought the first Sh2 billion here it went under. We added another Sh2 billion, again it was misappropriated. We looked at that and said enough is enough,” Ruto said.
The DP spoke on Friday during the launch of Wanga Technical and Vocational College in Mumias East.
He asked the county government and other players in Mumias Sugar to borrow a leaf from privately owned millers West Kenya and Butali.
Kenya Commercial Bank on September 24 appointed Ponangipalli Venkata Ramana Rao of Tact Consultancy Services as the receiving manager at the miller.
The company has remained shut for more than a year over huge debts and lack of sufficient raw material occasioned by poaching of cane by rival millers.
Ruto urged the bank to hold talks with the county government on how the receivership could be handled to revive the miller.
MPs Ben Washiali (Mumias East), Malulu Injendi (Malava), Enock Kibunguchy (Lukayani), John Waluke (Sirisia) and former Kakamega senator Boni Khalwale accompanied the DP.