Malala wants Uhuru to waive Mumias debts ahead of his tour

Kakamega senator Cleophas Malala wants President Uhuru Kenyatta to roll out a holistic and sustainable revival of the troubled Mumias Sugar Company during his planned development tour of Western next week.

In his letter dated August 4, Malala appealed to the President to intervene to have the Kenya Commercial Bank, which placed the company under receivership, facilitate the waiving of debts owed by the company to Kenya Power, Kenya Revenue Authority and the National Hospital Insurance Fund before the conclusion of the leasing of the company assets.

"Appreciating the fact that your government has made tremendous efforts in paying off farmers debts through Agriculture and Food Authority, I humbly request that the same goodwill be extended to Workers and Suppliers of Mumias Sugar Company,” the letter reads.

“Mr President, as you plan to visit our region, I wish to draw your attention to the plight of thousands of Kakamega residents whose livelihoods depended on Mumias Sugar Company and request that you seriously consider this during your development tour.” 

Sugarcane farming tops the list of wishes leaders from the region expect the President to address during the tour that starts Monday.

The company was placed under receivership on September 20, 2019, following huge debts and shortage of raw material occasioned by poaching of its contracted cane by rival millers.

Receiver manager Ponangipali Ramana Rao on Monday advertised for bids to lease the company’s core and none core assets under its revival plan.

Rao seeks to lease the nucleus estate, sugar factory, ethanol plant, co-generation plant, mineral water plant, residential estate, guest house, clubhouse, golf course and other movable properties.

“With a view to injecting a new lease of life and in order to facilitate a turnaround of the mill to profitability through modernisation and efficient management, the receiver wishes to invite the investors, who are interested in the leasing of all or any of the above facilities for a mutually acceptable period at an agreed monthly lease rent,” the notice reads.

In his letter, Malala also urged the government to pay statutory deduction arrears that have inhibited some workers from accessing their retirement benefits.

The senator said the company will attract better deals in the leasing process if the debts owed to government institutions were waived.

“Consequently Mr President, by so doing, your government would have paved the way for a clean takeover by the investors whose mandate would be to positively transform the factory without focusing on the debts,” he said.

He said the government should find a win-win formula that will ensure all interests of private lenders are taken care of.

In May, Malala protested that the leasing process was shrouded in secrecy. He took the matter to the Senate Committee on Agriculture, which summoned Rao and directed him to restart the process publicly.