Home ECONOMY Mumias Sugar Set to Revive Production

Mumias Sugar Set to Revive Production

by biasharadigest

Mumias Sugar Company Limited is set to revive production, after Kenya Power agreed to reconnect power to the miller’s premises.

However, the revival might be limited only to ethanol production, seeing as the miller is still struggling to find raw materials for its sugar production. After the miller fell into debt and loss making, most farmers uprooted their cane, resolving to other modes of agriculture to sustain their lives.

However, for ethanol production, the company buys its raw material (bagasse and molasses) from the privately-run Butali Sugar Mills.

According to Ponangipalli Venketa Ramana Rao, the receiver manager, they will then use the revenue generated from ethanol production to buy the available raw materials from farmers, and complete milling will only start once there is enough cane.

Additionally, Head of Human Resources, John Shiundu, indicates that the company has approximately 5,000 tonnes of cane from its own farms, which it plans to sell to Busia Sugar Company, and will hopefully generate KSh20 million which will also fund its operations.

Nation reports that the miller shut down its operations 20 months ago due to inadequate raw material and faulty machinery.

During its hay days, Mumias Sugar Company Limited was the largest sugar manufacturer in Kenya, producing about 250,000 metric tonnes (42%) of the estimated 600,000 metric tonnes annual national output.

See Also:

Why Mumias Sugar was Suspended from Trading at the NSE

KCB Appoints a Receiver Manager for Mumias Sugar

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