Mumias Sugar Company has received about Sh 240 Million from the government as part of the company’s ongoing bailout arrangement worth Sh3 billion which was requested in 2015.
The Govt through the ministry of Treasury disbursed the amount last week to help the listed loss making firm to run its day to day operations and clear debts owed to farmers.
Another Sh2.6 billion was given out between Q3 2015 and Q1 of 2016 of which a bigger chunk was used to pay farmers’ arrears and maintenance of the factory. Currently, the farmers are owed about Sh 12 Million according to Kenya National Federation of Sugarcane Farmers while Business Daily puts the figure at about Sh900 million.
Last Month, the company released its financial results for the six months ended December 2016 posting a 40 per cent decline in net revenue to Sh 1.53 Billion compared to Sh 2.98 Billion posted in the previous period in 2015.
READ; Mumias Sugar issues Profit Warning, Loss Deepens By 70% To Sh 3.79Bn!!
Share Price Performance.
At the Nairobi Securities Exchange, Mumias Share Price was up by 5.26% to grade at Sh 1.0, 30 Minutes after Market open as shown below.
