Webuye Pan Paper to reopen Uhuru announces

President Uhuru Kenyatta has announced plans for the reopening of Webuye Pan Paper Mills after strategic investors agreed to pump in Ksh 6 billion for its revival.

The announcement was made during a meeting between the President and leaders from the Luhya community at State House, Nairobi on Thursday.

In his statement, President Kenyatta stated: “I have been briefed by Price Waterhouse Coopers, who are the joint receivers of Pan Paper Mills, about an agreement they have reached with a strategic investor to purchase the assets of Webuye Pan Paper Mills..”

“The agreement provides not just for the purchase of the mill, but also for the revival of an industrial icon in western Kenya, a major source of livelihood for our people from this region.”

He said that the industry represented a symbol of Kenya’s progress and made Webuye a vibrant town, with a productive population of workers, traders and their families.

Webuye Pan Paper Mill was closed on January 30, 2009 over non-payment electricity bill estimated at Sh209 million leading to massive loss of jobs.

It also had total outstanding debt of Sh8.1 billion, excluding money owed to the government for unpaid royalties amounting to 680 million shillings.

Prior to its closure, the factory supported over 5,000 people directly and another 30,000 indirectly.

@benjaminwafula