Mumias Sugar In Crisis As Pretax Loss Hits Ksh 2 Billion
The publicly owned sugar miller plunged into a half year pretax loss of 2 billion shillings which is more than five times the loss it suffered during a similar period in 2013.
This was against the backdrop of depressed global sugar prices and unfair competition from contraband imported sugar.
The company’s management has also blamed the loss on the extended closure of its factory late last year, a period that is usually the peak season for sugar millers.
The management also says there was an acute shortage of sugarcane affecting the volume crushed by the miller. As a result, production fell by more than half to slightly over 443 thousand tonnes.
Mumias Sugar Company’s management is now in talks with its financiers to extend its loan repayment period to five years inclusive of a grace period of 2 years.
This as the company’s board creates a leaner management structure to help Mumias sugar out of its current woes.
By Wangui Ngechu
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