Kenyan county government disburses US$2.7m financing for cane development ahead of reopening of Mumias Sugar Company

KENYA – The County Government of Kakamega is gearing up for the opening of state-owned Mumias Sugar Company by releasing Ksh300million (US$2.7m) financing to be disbursed to farmers for cane development to ensure the milling company will have sufficient raw materials when it re-opens mid this year. Governor Wycliffe Oparanya said that sugarcane farmers both contracted by state-owned and privately owner sugar factories are eligible for the loan. To ensure proper allocation of the funds, Oparanya has signed a Memorandum of Understanding (MoU) with the Commodities Fund Board of Trustees…

Read More

Mumias Sugar Company resumes ethanol production after securing raw materials

KENYA – Kenyan state-owned sugar company, Mumias Sugar has re-embarked on ethanol production after getting supplies of molasses from other sugar millers i.e. Nzoia, Butali and Muhoroni. According to reports by Business Daily, the financially struggling company has been depending on ethanol as its mainstream of income. It halted sugar production over two years ago due to shortage of raw material and a huge debt portfolio. “We have started processing ethanol after we got supplies of molasses and we expect the current stocks to run for some time,” said an…

Read More

Mumias Sugar set to re-embark on ethanol production as part of the millers revival plan

KENYA – Mumias Sugar Company is expected to resume ethanol production Friday, 17th January 2020 after reconnection of power supply to the factory. Mr Ponangipalli Venkata Ramana Rao, the receiver-manager appointed by Kenya Commercial Bank (KCB) to oversee the revival of the miller said yesterday a team from Kenya Power had visited the factory to inspect transformers before reconnecting the power supply. “We are set to start ethanol production by Friday as we finalise plans to resume milling operations. Everything is so far moving according to plan,” he said. The…

Read More

Mumias Sugar’s receiver manager appoints new boss as part of the millers revival plan

KENYA – Mr PVR Rao, Mumias Sugar Company’s receiver manager appointed by KCB has picked Francis Wabuke as acting general manager of the sugar company, part of his plan to revive the miller. Mr Wabuke is a former employee of the Booker Tate Company, a leading international agricultural production and processing consultancy firm. Before joining Booker Tate, he worked Mumias and later took up a management position at the Nzoia Sugar Company. The appointment comes after Mr Rao recently met officials of the Kenya Union of Sugar Plantation and Allied…

Read More

Kenyan Court interdicts KCB from selling Mumias Sugar Company assets

KENYA – The Kenyan High Court has extended orders stopping sale of the assets belonging to the troubled Mumias Sugar Company by the Kenya Commercial Bank and its receiver manager. The court said the status quo be maintained and no changes to be made in the company while it is under receivership by KCB Group over financial woes following the execution of a lender’s agreement deed dating back to September of 2010 to protect its assets and keep operations running. The move by KCB follows approval by the court and…

Read More

Mumias Sugar posts US$68m loss in tough year

KENYA – Mumias Sugar slid deeper into the red after reporting a net loss of Sh6.8 billion (US$68m) in the financial year ended June 30, 2017 against Sh4.8 billion (US$48m) made in 2016. A tough operating environment characterised by acute cane shortage and high prices contributed to the massive loss. Mumias, whose product is back on the shelves after months of factory maintenance, had it rough as revenues declined by 67 per cent to Sh2.1 billion from Sh6.3 billion the previous year. Turnover from sugar was Sh1.3 billion, down from…

Read More

Mumias Sugar resumes operations after long closure

KENYA – Mumias Sugar whose plant has been undergoing routine maintenance Mumias Sugar Company has started crushing cane after more than eight months of maintenance. The company closed for maintenance early this year, even though inadequate cane also contributed to the closure. Board Chairman Dr Kenneth Mulwa said the factory started operations at the weekend. “I can confirm to you that the company is operational after maintenance. The factory is crushing cane,” he told Financial Standard. He noted that the board had overhauled the firm’s management, adding that they have confidence in the new Chief Executive…

Read More