President William Ruto has directed a team to look into the Ksh. 33 Billion debt owed by Mumias Sugar. This is in a bid to ensure that the miller is back to operational standards signalling the re-opening of Mumias Sugar.
This comes after the Agricultural Food Authority and National Government suspended milling services on July 13, 2023 up to November 30, 2023 to allow cane to mature.
Meeting a team of leaders andfrom Kakamega County including the Governor Fernandes Barasa, the President discussed the measures to be put in place to see Mumias back to life. Barasa said that they have agreed on how to ensure operations resume immediately.
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“We have discussed and agreed on a lasting solution that will guarantee sustainable operations of Mumias Sugar Company and continuous livelihoods of the farmers. The factory shall resume its operations immediately.”
The meeting was attended by majority of Western leaders including Kakamega Senator Boni Khalwale, MPs Nabii Nabwera, Innocent Mugabe, Johnson Naicca, Benard Shinali, Titus Khamala, Emmanuel Wangwe, Christopher Aseka, Malulu Injendi, Tindi Mwale and Fred Ikana.
Mumias Sugar company collapsed in 2018 having incurred losses amounting to Sh39.44 billion. This forced the company to shut down its operations affecting the farmers in the region.
Apart from the re-opening of mumias sugar, the team also discussed other issues including completion of Sh6.2 billion Kakamega Level 4 hospital. The national government will ensure equipping and operationalisation of the facility.
The first phase of the 750-bed capacity hospital cost Sh2.5 billion. However, the contractor raised 50 interim payment certificates for work done totalling Sh1.9 billion.
The discussion also revived the issue of expansion of Kakamega Airstrip. The expansion of the current airstrip will be done by allocating 300 acres of Shikusa Prison’s land to Kenya Airports Authority.