Mumias Sugar to Resume Operations in March

Mumias Sugar Company is seeking a strategic investor

Cash-strapped Mumias Sugar Company said it would resume operations in January after concluding repairs and maintenance of the factory according to its receiver-manager.

Mr. Ponangapalli Venkata Ramana Rao, says they will start with the ethanol distillery in January.

“Our intention is to re-start the operations at the earliest time. We are planning the distillery in January,” he said.
However, there are fears factory operations can be derailed if there would be an inadequate supply of cane.

“Factory operations, probably February or March the earliest. But still, it requires a detailed analysis of the cane available. Without the cane, the factory cannot run,” said Rao adding that they will still run the molasses section.

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He refuted claims that they will be selling the plant’s assets after it was placed under receivership.

The miller posted a net loss of KSh.15.1 billion in the financial year 2018/2019 against compared to the previous year’s loss of KSh.6.8 billion.

It owes the Kenya Revenue Authority KSh 10 million while the Kenya Commercial Bank (KCB Group) which appointed a receiver-manager is owed KSh 20 billion.

Its shares remain suspended at the Nairobi Securities Exchange. 

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The Capital Markets Authority (CMA) announced the suspension extension, Thursday 19, Dec. following placement of the company under receivership on September 20, 2019.

“The extension of suspension from trading the company’s shares is for a further 3 months with effect from December 27, 2019. All shareholders, investors and the general public are asked to take note of the suspension,” the statement says.

(Last 2 paragraphs updated 19 Dec. 2019)