The Kenya Revenue Authority (KRA) has stopped Mumias Sugar Company from selling its ethanol after the company failed to pay a KSh100 million bond prerequisite in an ongoing tax dispute.
According to the acting Human Resource Manager, John Shiundu, the company had requested to raise KSh10 million, a proposal KRA rejected.
We are appealing to the President, Uhuru Kenyatta, and Kakamega Governor, Wycliffe Oparanya, to intervene in the issue so that ongoing plans for the revival of miller are not disrupted. We have written to the government for a remission on taxes, but we are yet to get any response.
Mumias Sugar Acting Human Resource Manager, John Shiundu
Mumias Sugar Company Limited revived ethanol production in January this year after Kenya Power agreed to reconnect power to the miller’s premises. To date, ethanol production has been the company’s only source of revenue, with hopes of reviving sugar production later this year.
Daily Nation reports that last week, the company produced 340,000 liters of ethanol, which it sold locally to different firms. Ethanol is a key raw material in the manufacture of affordable alcohol-based hand sanitizers.
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