Residents of Kakamega County will now reap big after President William Ruto directed a team to look into the Sh33 billion debt Mumias Sugar Company owes as well as to oversee resumption of milling.
This even after the Agricultural Food Authority and National Government suspended milling services on July 13, 2023 up to November 30, 2023 to allow cane to mature.
On Saturday, Ruto met a team of lawmakers from Kakamega County led by Governor Fernandes Barasa where they discussed measures to revive the sugar sector.
“We have discussed and agreed on a lasting solution that will guarantee sustainable operations of Mumias Sugar Company and continuous livelihoods of the farmers. The factory shall resume its operations immediately,” Barasa said.
Barasa was speaking during a press conference at a Nairobi hotel flanked by Kakamega Senator Boni Khalwale, MPs Nabii Nabwera, Innocent Mugabe, Johnson Naicca, Benard Shinali, Titus Khamala, Emmanuel Wangwe, Christopher Aseka, Malulu Injendi, Tindi Mwale and Fred Ikana.
Mumias Sugar woes began in the 2012/2013 financial year when it started recording net losses before collapsing by the end of 2018 having incurred losses amounting to Sh39.44 billion.
As at June 2018, the company's borrowing, principal loans and interests from in and out of government stood at Sh12.59 billion.
“We have had Kabras Sugar and Butali Sugar advertise their new rates and we hope that once Mumias Sugar comes back on board, they will learn from the rest and come up with new rates,” Khalwale said.
The negotiations will also ensure completion of Sh6.2 billion Kakamega Level 4 hospital where the national government will ensure equipping and operationalisation of the facility.
The first phase of the 750-bed capacity hospital cost Sh2.5 billion. However, the contractor raised 50 interim payment certificates for work done totalling Sh1.9 billion.
Once completed, it will serve not only residents of Kakamega County but the entire former Western region since it will be the only level 6 hospital in the area.
Further, the team agreed that the national government shall oversee expansion of the current airstrip by allocating 300 acres of Shikusa Prison’s land to Kenya Airports Authority.
“This means we shall relocate the Kakamega airport from its current location Muranda to Shikusa project subject to professional advice from the relevant bodies; Kenya Civil Airport Authority and National Environment Management Authority," read part of the presser.
