Govt. gives another 1 billion to Mumias sugar
Mumias Sugar Company has for the second time received KSh 1.1 billion from the government as part of the deal to rescue the ailing sugar miller.
The amount adds up to a total of Ksh. 2 billion that the government through its treasury has pumped into the company after it released another one billion in the year 2015.
Mumias Sugar Company Chairman, Dan Ameyo said the money has come at an appropriate time as the company embarks on streamlining its operations.
I take this opportunity to thank the government for this well-timed intervention that will help Mumias Sugar to grow in line with our turnaround strategy,” Mr Ameyo said in a statement.
You can also read, Govt. is committed to reviving Mumias Sugar.
Funds from the second bailout tranche will specifically be used for purchasing new equipment, payment of farmers as well as staff rationalization.
The government now owns 20 percent of shares in the company after pumping more than two billion shillings.
Mumias has remained as a loss making entity and is already staring at a Ksh. 2.26 billion half year loss.
Last April, the sugar miller lay off 100 workers after it shut down its water bottling plant and has been looking to cut down on staff number to operate optimally.
The board last year appointed Errol Johnston as its new Managing Director to steer the revival plans.
Mumias requires an estimated Ksh. 4 billion to turnaround its operations.