Mumius sugar company is scheduled to continue operations after coming into a deal with Kenya Power over a bill worth Ksh. 1.2 billion.
The company which for a long time has been financially troubled said, through its chairman that it had made a payment of Ksh 2 million to Kenya power. This is believed to have raised the hope of resumption of operations in the sugar company. The board chairman Kenneth Ngumbau said that the company had to sell some metals in order to come up with funds to pay the bill. This is believed to have played a part in the agreement. The issue that led to the disconnection of power was an unpaid bill of Ksh. 1.2 billion.
The management is currently in the process of finalising preparations in order to restart cane crushing. The company had collected 2,000 tonnes of sugar cane as at 15th February. The company is now gearing up to begin milling after an interruption for nine months.
It has also been reported that the company requires a minimum of Ksh 3.5 billion from the National treasury for it to stand on its feet.
Meanwhilst, a farmers lobby suggested the withdrawal of the so called draft sugar regulations. The farmers, through the Kenya National Alliance of Sugar cane farmers organization opposed the privatisation of the sugar mill. They termed it as bureaucratic and unworkable.
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