This archive report was first published on 2 September 2019.
On August 30, 2019, Mumias Sugar Company employees received a memo from acting Head of Human Resource John Shiundu, stating that the Kenya Revenue Authority had issued an Agency Notice to all their bankers, restricting transactions until Sh10 billion in taxes outstanding since 2012 were settled in full.
According to the memo, the management of the miller was expected to meet with the KRA to resolve the issue. Shiundu assured employees that the management was focused on resolving the issue in the shortest time possible and was committed to paying staff advances as promised.
However, the latest development has crippled ethanol production, which the company was relying on to generate some revenue to sustain operations and pay workers' salary advances. A source revealed that a client deposited Sh3 million into the miller's account last week to be supplied with ethanol, but the amount was immediately recovered.
As the financial woes of the miller deepen, Kenya Power disconnected electricity to the firm over an outstanding bill amounting to Sh1.2 billion. Kakamega Governor Wycliffe Oparanya is expected to unveil a report prepared by a taskforce he appointed a month ago to come up with recommendations on the revival of the debt-ridden firm.
