Govt. is committed to revive Mumias Sugar
The government has reiterated its commitment towards ensuring that Mumias Sugar company reverts to a profit making company.
Speaking during an impromptu tour at the firm over the weekend, deputy president William Ruto said that the jubilee government will ensure that Mumias sugar is back on its feet again and the government has began by ceiling all avenues of cheap sugar imports.
“We as the jubilee government are fully committed to farmers in this region, we want to see this company regain its lost glory and we have started by closing all avenues of cheap sugar imports in the country.” Said Ruto.
He added that the government has also availed subsidized fertilizer to cane farmers and other farmers in the region.
The deputy president applauded the efforts of the board at the company noting that the company had farmers arrears of 8 months but it has been able to reduce it to two months and plans are underway to pay farmers upon cane delivery like in other companies.
He said the government will now address cane development to ensure the company has sufficient cane and also return production to the 700,000 metric tonnes that used to be produced before the company collapsed from the current 450,000 metric tonnes.
“We have given the board instructions to ensure a rights issue is carried out as this will ensure prompt payment of farmers and thus increase production.” Said Ruto.
He asked the board to state its challenges as they are behind with three months in implementing agreements that had been discussed between the government and the company.
He however said the jubilee government is planning to give Mumias sugar company another 2 billion shillings to facilitate operations at the company.
Mumias east Member of Parliament Benjamin Washiali who was also on the tour asked the government to fasten the process of aiding the company the 2 billion to fast track operations at the company.