The Agriculture and Food Authority (AFA) Director-General Joseph Ng’etich said the firm is on receivership and banks have shied away from lending money to them, a move that has affected its operations.
Muhoroni is highly indebted to the tune of over Sh27 billion and has only been staying afloat through funds from the defunct Sugar Development Levy.
Muhoroni Sugar Factory is facing dire financial need as it cannot access funds from banks for cane development and maintenance of the plant, the Sugar Directorate has said.
The Agriculture and Food Authority (AFA) Director-General Joseph Ng’etich said the firm is on receivership and banks have shied away from lending money to them, a move that has affected its operations.
Muhoroni is highly indebted to the tune of over Sh27 billion and has only been staying afloat through funds from the defunct Sugar Development Levy.
"For a long period, Muhoroni has been under receivership, consequently, the company has not been in a position to access credit for cane development, factory operations and maintenance," said Mr Ng’etich.
Mr Ng’etich, however, said last week’s closure is meant for routine maintenance and that all employees are on a paid leave. He said the AFA will ensure that the operations of the company resume as scheduled.
On Friday, Muhoroni sugarcane farmers demanded the dismissal of top management even as the administration blamed hostile business environment for their woes.
Sugarcane growers ahve attributed the accumulation of Sh159 million arrears dating back to April last year to neglect.
of the critical stakeholders, the management cited importation of cheap sugar as a major drawback to their operations.
The farmers, led by Kenya Sugarcane Growers Association secretary general Richard Ogendo, asked the government to hasten the bailout process to save farmers from their current sufferings.
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