Mumias has stopped selling of electricity to Kenya Power while ethanol production is now on and off as the two activities rely on cane milling.
Mumias, which resumed selling of electricity to Kenya Power last year, usually exports about 55 per cent of its daily power output to the national grid, with the rest used to run its machines.
The recent suspension of milling operation at Mumias Sugar Company #ticker:MSC has hit the firm’s other revenue streams in what is set to hurt its earnings in the current financial year.
Mumias has stopped selling of electricity to Kenya Power #ticker:KPLC while ethanol production is now on and off as the two activities rely on cane milling.
The firm’s managing director Nashon Aseka said power production has totally been interrupted while they are procuring molasses from other factories to run the ethanol plant.
“We have stopped selling electricity to Kenya Power since milling was interrupted. The ethanol plant has been on and off since we have to procure molasses from other factories,” said Mr Aseka.
He added that it might take another two weeks before they resume milling as the ongoing rains have affected cane delivery.
“We would have resumed milling by now, but there have been delays in accumulating enough cane to turn on the machines, the roads have become impassable and we are unable to get sugarcane to the factory,” he said.
Mumias, which resumed selling of electricity to Kenya Power last year, usually exports about 55 per cent of its daily power output to the national grid, with the rest used to run its machines.
The company, which is in multi-year losses, says its turnaround depends on more cash injections from shareholders including the government.
Some lenders have recalled Sh2.6 billion of the loans they provided to the cash-strapped miller.
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