The Mumias Sugar Company has restarted operations after a new investor acquired control, according to Senator Boni Khalwale of Kakamega on Friday, November 11.
Thousands of unemployed youngsters and farmers who switched to maize cultivation following the collapse of the corporation often look to it as a beacon of hope.
Moreover, he posted on Twitter that the company had just employed 800 additional workers, with plans to eventually raise the headcount to 5,000
Debts to lenders, as well as astronomical utility and tax expenses, brought down Mumias Sugar Co.
Despite getting a Ksh3.70 billion bailout from the national government, the manufacturer recorded a net loss of Ksh15.10 billion for the 2018/19 financial year, up from a loss of Ksh6.80 billion in the previous year.
In September 2019, one of its lenders would seek to have the company put under receivership.
Because of its massive debt, the company had to hire an administrator to try to get its hands on more than Ksh500 million.
Pongangipalli Venkata Ramana Rao, the receiver manager, said in June 2021 that the factory’s assets were worth Ksh15.7 billion and its liabilities were around Ksh30.1 billion.
After winning the August 9 election, President William Ruto vowed to restore the struggling company within three months.