Mumias share price up on Comesa safeguards extension

Mumias Sugar Company shares at the Nairobi Securities Exchange (NSE) rose 6.7 per cent Tuesday following the extension of the Common Market for Eastern and Southern Africa (Comesa) quantitative safeguards that give a lifeline to the industry for the next one year.

READ: Kenya wins sixth Comesa protection from cheap sugar

The share sold at Sh1.60 on average compared to Sh1.50 the previous day, making it one of the top climbers in Thursday’s trading, as news emerged of the continued sugar import restriction.

At the close of trading, the company had seen a turnover of Sh1.26 million with a volume of 778,800 shares.

According to data from Sterling Investment Bank, there was no buying or selling on the part of foreign investors. The share fell to a historic low of Sh1.35 early this year over deepening financial woes at the firm.

The decision to grant Kenya the sixth extension was made during the 35th Comesa Council of Ministers meeting in Zambia.

This means the country has up to February 2017 to restructure the industry after seeking export bans for the last 15 years.

The bloc tariffs were scheduled to fall to zero come next February but the extension was given to carry out reforms such as the sale of loss-making millers. The government advertised the sale of the five sugar factories, including Sony, Muhoroni, Miwani, Chemilil and Nzoia.

The State-owned millers have debts amounting to more than Sh100 billion.