Mumias Sugar Company’s efforts to get back into business have been crippled by Kenya Revenue Authority (KRA), which has again frozen its accounts, citing claims of Sh10 billion unpaid taxes.
Kenya Revenue Authority issued an Agency Notice to all the company’s bankers, restricting transactions until Sh10 billion in taxes outstanding since 2012 are settled in full.
A similar freeze on its accounts in May, over which the Government helped in the unfreezing, occurred after the miller defaulted on a payment schedule that required it to pay millions of shillings monthly.
In a new turn of events however, a new task force has suggested the management of the company to be taken over by the Kakamega County Government.
In a report handed over to Governor Wycliffe Oparanya, the task force team suggested that the county should use part of its revenue to buy shares of the ailing Mumias Sugar Company, as it moves towards full control. In addition, the report suggests the creation of a cane development fund package of Sh100,000 per hectare, aiming to entice farmers who had uprooted their cane.
“Kakamega County should bid to take charge of the miller’s administration role through the court process as it has the human resources, financial muscle and the public goodwill to manage the revival of the company,” the report states.
The report further proposes that the cash raised from licences, permits, cess, rent and other levies especially for manufacturing companies be used to purchase a stake in the miller.