Fresh bid to revive ailing Mumias Sugar overdue

Mumias Sugar Company has been on its deathbed for a while now. The entry of KCB Group-appointed receiver-manager in November 2019 marked a sad turning point in the once giant sugar miller’s dwindling fortunes.

The debt owed by State-run sugar millers rose to Sh90.4 billion, according to a February 2020 report. The amount included outstanding loans, taxes, penalties and fines due to the government.

Efforts by the government and other stakeholders to resuscitate the cash-strapped sugar miller have so far come a cropper.

However, the news that steel manufacturing billionaire Narendra Raval plans to invest Sh5 billion in the revival of Mumias Sugar throws a lifeline to the ailing miller.

The steel tycoon seeks to modernise the sugar miller’s ageing plant and develop cane.

The company stopped production nearly three years ago, disrupting the livelihood of thousands of farmers, employees and other stakeholders.

However, the latest bid to have the sugar factory operating is expected to boost Kenya’s sugar production and meet the local demand for the commodity.

We urge all stakeholders in the sugar sector to seek a lasting solution to the woes afflicting State-owned millers.

Urgent measures should be put in place to address the systemic weaknesses bedevilling the sugar sector.

It is instructive to note that private millers, some of them launched recently compared to their State counterparts, are operating profitably.

The stakeholders should address claims of mismanagement and plunder at the State sugar millers and bring to book the managers implicated in the running down of the companies.

Besides, State millers should invest in modern equipment to compete effectively with regional and global peers to cut costs and make local sugar cheaper.