Assembly adopts report on revival of ailing sugar miller : The Standard

The county assembly has adopted a task force report recommending that the county government should be involved in the running of Mumias Sugar Company. The Protection of Public Assets in the wider Mumias region and the Revival of Mumias Sugar Company Limited, was adopted after it was discussed on Wednesday, three weeks after it was launched. It highlighted among other recommendations how the county government would take up operations of the struggling sugar firm to help revive it. The report was handed to governor Wycliffe Oparanya, who had commissioned the task force on September 3.

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Ward reps unanimously approved the report which they termed as the gateway towards having the once-regional giant miller operational again. The motion for adoption was moved by Majority Chief Whip Dickson Ombayo who highlighted the importance of the county government getting involved in the miller’s affairs and safeguarding the interest of sugarcane farmers and locals. “Sugarcane farmers have bore the brunt of the collapse of the factory, which directly or indirectly, supported the livelihoods of millions of people and as the people's representative, we must support this report,” said Mr Ombayo.

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Marama Central MCA Philip Maina supported recommendations in the report, but urged the county executive to work with the national government for a smooth transition and revival at the miller. “This report has shown stakeholders have a clear road map to revive Mumias Sugar through helping farmers on cane development among other revival strategies,” said Maina.

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The assembly’s Leader of Majority Joel Ingoro and the Agriculture Committee chairperson Geoffrey Ommatera noted the miller gets good investment, it will raise the livelihood of residents county revenue. Once approved by the assembly, the county executive will start implementing recommendations of the report. The report recommended that there be a fund dubbed “Oparanya-Inyingo Fund” which will take care of cane development since more than 4,294.8 hectares of land is under the company The report says that under the fund, a cane development package of Sh100, 000 per hectare should be established as a revolving fund to entice farmers who had uprooted their cane. Other recommendations include the county government appointing a caretaker committee to oversee the implementation the proposals.

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The county government was also to take over management or identify another investor capable of funding the revival of the miller. “Identify and negotiate with an investor to finance at least Sh5 billion to jump-start the operations of the company,” read part of the report. The miller was placed under receivership on Tuesday, with Kenya Commercial Bank appointing Ponangipalli Venkata Ramana Rao as receiver and manager.

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Related Topics

Mumias Sugar CompanyCounty assemblyProtection of Public Assets