The management of loss making miller, Mumias Sugar company has confirmed that the company is in the final stages of negotiating with the government for another sh. 3.1 Billion package.
According to the Daily Nation, the bailout will be given in three tranches with the first one expected to be wired out by the end of next month.
“The negotiations are in the final stages. The plan is to release the money in three phases in the ongoing efforts to turn around the fortunes of the miller.” Mumias East Mp Benjamin Washiali was quoted by Daily Nation.
Since 2014, Mumias has received about Sh 3 Billion from the government (bailout) which was supposed to help the company pay debt owed to farmers and repair machinery in order to resume normal operations. But it looks like the cash was diverted to other unknown purposes given that there’s no major improvement since then.
Meanwhile, the company’s Board Chairman Dr. Kennedy Ngumbau Mulwa has clarified that the company has not closed down due to cashflow problems but its undergoing annual routine maintenance which is expected to last for three months.
In a statement filed with the Nairobi Stock Stock Exchange, Dr Mulwa said the company is on a “NORMAL OUT OF CROP CLOSURE (OOC).”
