UNDER RECEIVERSHIP

Mumias Sugar resumes milling after over five years

Manager says company currently crushing 2,000 tonnes of cane per day.

In Summary
  • Kihumba said the company was currently crushing 2,000 tonnes of cane per day.
  • The factory that was established in 1973 has an inbuilt capacity of 8,400 TCD.
Mumias Sugar Company entrance.
Mumias Sugar Company entrance.
Image: FILE

The giant Mumias Sugar Company has resumed milling after over five years of closure. 

The company stopped milling sugar in 2017 over heavy debts it owes to financial institutions and other lenders.

The company, under receivership, has recalled some former employees in the production section.

Factory operations manager Stephen Kihumba on Wednesday said the company is however still on test run but sugar milling is on.

“We are relying on farmers to deliver sugarcane as we work towards developing our own nucleus. Farmers are happy and there is life in Mumias once again,” Kihumba told the Star on the phone.

Kihumba said the company was currently crushing 2,000 tonnes of cane per day. The factory that was established in 1973 has an inbuilt capacity of 8,400 TCD.

The manager said the company is paying farmers delivering cane weekly at the rate of Sh4,585 per ton. 

He said the company has recalled over 500 of its former employees.

“It would have taken too long if we were to train new staff and that is why we recalled former workers, especially in the production section,” he said.

The resumption of operations at the once premier miller in East and Central Africa has breathed a new lease of life in Mumias town which had become a ghost town following the collapse of the company.

The economies of Western counties has been in a slump for close to a decade following poor performance by the sugar industry.

The company went down over three years ago under huge debts. 

It was placed under receivership by the Kenya Commercial Bank  group in September 2019.

In his inaugural speech at the county assembly on October 4, Kakamega Governor Fernandes Barasa put on notice cartels who have continuously frustrated the revival efforts of the miller for personal and material gains.

“As we play our part on this course, I call upon political leaders to demonstrate goodwill and support by all stakeholders in the revival of the company,” he said.

 

 

-Edited by SKanyara

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