State to surrender Mumias Sugar shares to county government -Ruto

The national government plans to offload it's shareholding in the troubled Mumias Sugar Company to the county government to steer the revival of the miller, Deputy President William Ruto has said.

The national government owns 20 per cent of shares in the troubled company.

The government had pumped Sh 3.7 billion in its turn around the strategy that failed.

"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 move to transfer shares will be a big boost to efforts by the county government to revive the miller. 

The move would give the county government representation on the board of management. 

Ruto said the county government had presented a turnaround plan and should be given a chance to play a major role in the company affairs.

The DP 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,” said Ruto.

The DP spoke during the official launch Wanga Technical and Vocational College in Mumias East on Friday.

Kenya Commercial Bank (KCB) on September 24 appointed Ponangipalli Venkata Ramana Rao of Tact Consultancy Services the receiving manager at the miller.

The company has remained shut for over a year over huge debts and lack of sufficient raw material occasioned by poaching of her cane by rival Miller's.

Ruto also urged the bank to seek talks with the county government on how the receivership could amicably be handled and help 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.

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