Keep Rai Paper promise, Bungoma Chamber of Commerce tells Uhuru

A file photo of Industrialisation Minister Aden Mohamed and Bungoma leaders, led by former Governor and Senate Speaker Kenneth Lusaka, looking at a sample of paper produced at Rai Paper in Webuye. /BRIAN OJAMAA
A file photo of Industrialisation Minister Aden Mohamed and Bungoma leaders, led by former Governor and Senate Speaker Kenneth Lusaka, looking at a sample of paper produced at Rai Paper in Webuye. /BRIAN OJAMAA

The Bungoma Chamber of Commerce wants Rai Paper fully revived in line with President Uhuru Kenyatta's promises of jobs and a better economy.

Chairman Herman Kasili has asked the management of the Webuye factory to tell residents when it will be fully operational.

"This mill was revived by the President last year but we have been told that only

two of its lines are operational," he told the press

in Webuye town on Sunday.

Kasili, who is also a Reverend, cited Uhuru's promises that locals would get jobs and that business in the region would boom.

"Uhuru promised Bungoma and Western residents, who depended on the mill, that they would get employed and earn good incomes. We want that to be felt and for lives to changes, especially for Webuye town residents," he said.

"We as a chamber are asking the President to ensure that he honours what he was promised Western electorates - that all the phases will be running."

The factory was closed in 2002 for reasons including huge electricity bills.

Former President Mwai Kibaki's regime reopened it in 2007 but it was closed again

in 2008 after the bills accumulated to more than Sh500 million, under

Indian

investors who later fled.

The government later sold it to Rai Group of Companies at Sh900 million against a value of Sh18 billion.

Some local politicians and residents had opposed the sale noting it was a throwaway price. They also said they were not consulted while Senator Moses Wetang'ula said the county could have bought it.

The name of the mill changed from Pan Paper to Raila Paper. The first phase was opened in December 2016 and the second in July last year.

Production stands at close to 3000 tons of paper daily.

Kasili said residents want specific details of mechanisms that have been put in place for all the four phases to "roar back to life".

"The two phases use recycled paper ... no trees have been used so far ... residents want to know what is happening," he said.

The official

thanked Uhuru for the directive for former workers to be paid Sh76 million

But he added:

"What we want to know is if the families of those who died long ago were compensated, if their money was returned to the national government or it was 'eaten' by selfish people."

The chairman regretted that "nobody" from the county had been hired since the second phase was revived.

Majority of the workers are from other parts, he told the reporters, adding locals should be consulted before decisions are made at the factory as was the case

under receiver manager Ian Small.

Regarding Bungoma's role in the operations, he said: "The plan by the county to repossess the mill, having sold it at a throwaway price, is impossible as it is now in private hands".

The move will result in court battles, he warned.

"We want Governor Wycliffe Wangamati to build industrial parks that will depend on the mill for paper conversion and other matters," he added, noting this will create many jobs and help businesses grow.

After the reopening in July 2017, the management said 1,000 people in Bungoma would be employed.

At the time, Industrialisation CS Aden Mohamed said: Our goal is to see every Kenyan have a decent life. By reviving these factories, the government aims at creating more jobs for Kenyans, particularly the youth."

Senate Speaker Kenneth Lusaka, who was Governor at the time, said: "No doubt in two years’ time, Rai Paper will be operating at full capacity, double its capacity and employ close to 4,000 people.”

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