State releases Sh1 bn towards recovery of Mumias Sugar
What you need to know:
The move followed a visit by Members of Parliament from the Western region who had paid President Uhuru Kenyatta a courtesy call at State House on Monday.
The government has released Sh1 billion towards the revival of the Mumias Sugar Company, injecting much needed equity towards the survival of the troubled miller.
The move followed a visit by Members of Parliament from the Western region who had paid President Uhuru Kenyatta a courtesy call at State House on Monday.
The meeting discussed a four-point turn-around strategy for Mumias that includes the appointment of a professional management team, injection of funds based on a viable plan, undertaking a rights issue to raise between Sh3 and Sh4 billion, and rescheduling of debts the company owes financial institutions.
'Not political'
Speaking on Monday at State House, Nairobi, President Kenyatta said the decision to release funds towards the recovery of the key sugar company was based on the government’s commitment to supporting cane farmers and not politics.
“We are keen on reviving the sugar company because we know it will benefit farmers. We strongly believe that it will support the economy of Western region. This has nothing to do with politics,” he said.
The president also expressed optimism that the funds will help to turn the company around into a profit making venture that would benefit not just cane farmers but also boost the economy of the western region.
The meeting was also attended by Deputy President William Ruto, National Treasury Cabinet Secretary Henry Rotich and his Interior counterpart Joseph Nkaissery.
