Mumias Sugar Company board chairman Kennedy Ngumbau said Tuesday the company had approached farmers from outside Kakamega for an additional supply of cane.
Mumias Sugar is looking for an additional Sh1 billion Treasury bailout to pay farmers and clear other outstanding debts.
The miller owes cane farmers an estimated Sh700 million.
Troubled sugar miller Mumias #ticker:MSC is set to re-start operations early next month after improved supply of cane in its catchment area.
The miller halted its operations in April, citing cane shortage.
Board chairman Kennedy Ngumbau said Tuesday the company had approached farmers from outside Kakamega for an additional supply of cane.
“We are having a board meeting to discuss a range of issues and top on our agenda is the plan to restart milling at the factory. We are upbeat everything is proceeding according to plan,” he said.
Mumias Sugar is looking for an additional Sh1 billion Treasury bailout to pay farmers and clear other outstanding debts.
The miller owes cane farmers an estimated Sh700 million.
“The supply of mature cane could last for close to six months as the miller engages farmers to improve cane development in the miller’s catchment,” said Mr Ngumbau.
In May, the government proposed retrenchment as a condition for releasing additional funds to the ailing miller.
Sports secretary Rashid Echesa said the government would peg further support for the miller on substantive plans to reduce its wage bill.
He said the State had offered another Sh1 billion to cater for the retrenchment and Sh1 billion to pay farmers.
“I led a team of management and board members of Mumias Sugar to the office of the deputy president and we agreed that they have to reduce employee numbers,” he said.
“The miller needs to identify employees who will be laid off and retain the most competent and skilled ones for effective service delivery.”
