• While addressing the county staff of Mumias East Sub county on Tuesday, Oparanya said plans were underway to revive operations in the company.
• He said the factory will resume operations before the August general elections.
Kakamega County Governor Wycliffe Oparanya, has said Mumias Sugar Company will start operation in two weeks time.
While addressing the staff of Mumias East Sub county on Tuesday, Oparanya said plans were underway to revive the company's operations.
"In two weeks time, tractors will be transporting sugar cane to the factory, and operations will commence immediately," he said.
He stated the factory will resume production before the August general elections.
In January 2018, Ecobank Kenya, KCB and Commercial Bank of Africa demanded debts amounting to Sh1.7 billion, Sh480.1 million and Sh364.5 million loans respectively be paid by the insolvent company.
In 2019, Kenya Commercial Bank (KCB) announced the plans to place the troubled miller under receivership.
The bank appointed PVR Rao (Tact Consultancy Services) as the sugar company’s receiver manager.
Rao acted as the appointed receiver and manager of the KCB long-term debt charged against the firms'assets.
Mumias' shares later closed at Sh0.27, having dropped by 3.57 per cent, holding a net worth of Sh305.10 million.
In May, the High Court cancelled Ugandan Sarrai Group Limited's lease on Mumias Sugar that started in December 2021.
In June, the court extended orders barring Sarrai Group from carrying out any activities in Mumias Sugar company.
“Pending the delivery of the ruling on 23rd September 2022, there shall be an interim order of stay of execution of the ruling and order of the High Court,” Justice Alfred Mabeya ruled.
The suspension was in place until a petition challenging the plant's operations is heard and determined.
Sarrai was ordered to immediately vacate the premises of Mumias Sugar.
The Ugandan company had already begun works and even pumped money into reviving the collapsed sugar mill.
The court stopped the process after several bidders challenged the bid.