Kakamega Governor Fernandes Barasa now wants legislators to include debts accumulated by Mumias Sugar among those to be written off by the State.
The government plans to waive Sh117 billion for five million.
Barasa said the debts owed by Mumias Sugar should also be incorporated in the write-off, as farmers and former employees continue to wait for the debts to be settled.
“We have been asking ourselves questions which are these millers? One of the omissions, not buy design was Mumias sugar. We must include debts owed by Mumias in the write-off proposal to parliament,” Barasa said.
Barasa was speaking during the second and final day of the Lake Region Economic Bloc Sugar conference in Kakamega County.
Five state-owned millers whose debts are set to be waived are Sony Sugar, Chemelil Sugar, Nzoia Sugar, Muhoroni Sugar and Miwani Company.
Barasa clarified that debts owed by Mumias Sugar are divided into three categories; agency loans, former employees' debts and farmers' debts.
“Debts owed by Mumias include loans owed because of funding of core generation that is almost Sh2billion. We also have loans relating to ethanol plant-almost 1.8billion and other agency loans amounting to Sh12.5billion,” he said.
According to the Mumias Sugar financial statement for the year 2018/2019, trade creditors including farmers were owed Sh13billion.
“We also need to recognize former employees who were owed Sh2.3billion, We are of the opinion that these numbers are captured in the memorandum and also one of the outputs of this conference,” he added.
The sugar conference seeks to come up with proposals for establishing structures for long-term reforms in the sugar subsector.
