Mumias Sugar Company should devise alternative ways of resuming crushing cane instead of waiting for government help, the Kenya Sugarcane Plantation Workers’ Union has said.
Union secretary General Francis Wangara said on Saturday in Kakamega tha the miller may remain shut longer if its management continues waiting for a bailout plan by the government.
“We have seen this work elsewhere and Mumias is not an exception. Sony and Chemilil sugar companies in South Nyanza had to come up with their own methods to raise money to resume operations and to date, the bailout by the state is not forthcoming,” he said.
Wangara said that the company should sell scrap metal in its yard and raise money to buy diesel to restart the engines.
“Alternatively, the management should engage dealers in sugar to get money to restart the machines and then give them sugar to pay off the debts once crushing begins,” he said.
The official said some of the firm’s directors have outlived their usefulness and should be replaced.
“The company went down on their watch and I doubt they have leads to revive it. What new idea can they generate now to revive it?” he said.
Mumias has remained shut since April for lack of adequate raw material. This is caused by
poaching of its cane by rival millers and debts of more than Sh20 billion.
The government has pumped Sh3.7 billion into the company which is yet to resume operations.
The company is currently producing ethanol using bagasse and molasses from other millers.
Two weeks ago, acting company Managing Director Patrick Chebosi said that the company will come up with a plan to resume crushing cane after the government pays farmers’ arrears of more than Sh800m.
“Even if we were to resume today, the morale by farmers will be too low. We shall have to map out the available cane before resuming operations once the government pays the farmers as promised,” he said.
President Uhuru Kenyatta, during Mashujaa Day celebrations, directed Treasury and the Agriculture ministry to come up with a way to pay sugarcane farmers contracted by state-owned millers amounting to Sh2.6 billion.
A task force co-chaired by Agriculture CS Mwangi Kiunjuri and Kakamega governor Wycliffe Oparanya is to come up with a framework on the revival of the sugar sector. Other members are Governors Okoth Obado (Migori county), Anyang’ Nyong’o (Kisumu).
The task force will review the policy of the sugar industry, check on the emerging challenges facing the sugar industry, do research and review importation of sugar.