Mumias Sugar has resumed ethanol production after three-and-a-half months with a promise to resume sugar cane crushing later this year.
Flanked by the firm’s receiver manager Ponangipalli Venketa Ramana Rao and area politicians, Kakamega Governor Wycliff Oparanya announced that the county government would spearhead an initiative encouraging farmers to restart sugar cane growing.
In 2018, Mumias Sugar Company halted sugar production on concerns of inadequate cane supplies among other challenges. This means the miller had until mid-October last year been relying on ethanol as its only revenue stream.
The miller shut the ethanol unit plunging it into deeper financial woes. This came about a month after being placed under administration for defaulting on loans totalling half a billion shillings advanced by KCB.
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The firm has received a lifeline after commissioning the ethanol unit, that halted production three and a half month ago.
The receiver manager of the miller says plans are at an advanced stage to resume other revenue generating units among them sugar cane crushing.
The rallying call by area leaders and receiver manager Ponangipalli Venketa Ramana Rao is that politicians should keep politics out of the affairs of the firm, that has been under receivership since last year.
The miller has been relying on purchasing key raw materials for ethanol production from private sugar mills. Resumption of sugar production would help it to source bagasse and molasses internally.
