Help Revive Mumias Sugar, Western MPs Urged

Members of Parliament from the Western Region have been urged to intervene and help resolve issues affecting Mumias Sugar Company.

In a statement to media houses, the Central Organisation of Trade Union (Cotu) said the sugar company is on the verge of collapse due to delays by the government to release the Sh1 billion promised to the company, noting that MPs from the region should help push for the funds.

“Mumias Sugar Company Limited is facing imminent closure soon if the Sh1 billion promised to the Sugar Company by the government is not effected immediately,” read part of the statement.

“COTU (K) now appeals to Members of Parliament from the Western Region to intervene and ensure that Mumias Sugar firm does not collapse.”

FRUSTRATIONS WITHIN GOVERNMENT

Cotu attributed the delay to individuals within government who re frustrating the process so that they can buy the company upon closure.

“Apparently, strategically placed individuals within government are behind these very efforts frustrating the release of the funds to Mumias Sugar and are already plotting to buy the sugar firm soon upon its closure and eventual collapse.

Early this year, the government promised to give Mumias Sugar Sh1 billion to help the cash-strapped company revitalise its production and stabilise operations.

A Sh5 billion plan to revive the sugar firm was reached after a strategic meeting between Deputy President William Ruto, Treasury Principal Secretary Kamau Thuge, Mumias Board Chairman Dan Ameyo, Chief Executive Coutts Otolo and other officials.

The plan would see the government give the sugar firm Sh1 billion with the other Sh4 billion being collected through a rights issue.