The Kenya Power and Mumias Sugar boards reportedly reached a consensus after years of negotiations to solve the impasse.
It is not clear, however, the terms that were agreed upon before the power was restored as the management could not give further details on the matter.
Kenya Power has reconnected sugar miller Mumias to the national electricity grid three years after the company was disconnected due to huge outstanding bills.
The Kenya Power #ticker:KPLC and Mumias Sugar #ticker:MSC boards reportedly reached a consensus after years of negotiations to solve the impasse.
It is not clear, however, the terms that were agreed upon before the power was restored as the management could not give further details on the matter.
At the time of disconnection Mumias owed power utility firm Sh1.7 billion in outstanding bills. Mumias has since October 2014 been relying on expensive diesel power generators for its operations.
“The miller was reconnected to the national grid over the weekend after an agreement between the two firms,” said Moses Owino, corporate communications manager at Mumias.
Of the total debt, Sh953 million is tied to disputes arising from power purchase agreements in which the two firms were locked in a tussle over tariffs chargeable and the amounts owed to each other.
Mr Owino said the two firms have agreed on reviewing the terms of the existing power purchase agreement to make it friendly for both parties. The miller will also have to clear the arrears.
Mumias has been pushing for the review of the contract, saying its terms are not friendly.
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