Mumias Sugar to Receive 3 Billion Shillings More from the Government As Bailout

It has now been confirmed that Mumias Sugar Company is in need of a total of 3.1 billion shillings’ bailout from the government for it operations to get back to normalcy.

According to Benjamin Washiali, Member of Parliament for Mumias East, the negotiations between the miller and the government are in their final stages and if the deal goes through, the company will receive the bailout in three stages where the first bunch of cash will be given by the end of June.

Board chairman of the ailing firm Kennedy Mulwa said that the cash is needed to take care of some pressing payments including farmers’ arrears which run into millions of shillings. While part of the money will also be used to pay workers’ two months’ arrears and procure new equipment for the factory.

Currently, the company has been closed down for the purpose of the annual routine maintain ace which takes place at the factory every year, the chairman dismissed claims that they had indefinitely closed down the company due to financial constraints.

“The factory closed for maintenance even though inadequate raw materials partly contributed to its closure. We expect it to go back into full-throttle operations once we have enough raw materials,” said Mulwa.

This is the second time that Mumias Sugar Company will be receiving bailout cash from the government. Earlier on, the company received about 3 billion shillings from the government that was supposed to help the company pay debt owed to farmers and repair machinery in order to resume normal operations.