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October 19, 2017

Mumias Sugar reopens tomorrow after it stalled for five months

Mumias Sugar Factory on February 24, 2015 /REUTERS
Mumias Sugar Factory on February 24, 2015 /REUTERS

Mumias Sugar Company will resume operations tomorrow, after five months of closure.

The company was closed for routine maintenance in May and was to reopen after three months. The reopening was, however, delayed due to a sugarcane shortage and financial constraints.

The government has pumped Sh3.7 billion into the company in a bailout plan. Yesterday, CEO Nashon Aseka said the factory has started receiving sugarcane from farmers.

“The management has engaged stakeholders, including the Kenya National Federation of Sugarcane Farmers, in the past one week to deliberate on a raft of issues that range from the thorny cane shortage crisis, financial difficulties, cane development and prompt payment for deliveries made earlier,” he said.

The factory is expected to crush between 2,000 and 3,000 tonnes of cane daily in the initial stages.

The management has agreed to pay farmers based on prices to be revised every month by the cane pricing committee, which comprises key stakeholders.

The price dropped from Sh4,800 to Sh4,100 this month. Farmers blamed this on cheap sugar imports.

 

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