This archive report was first published on 24 September 2019.
On September 20, 2019, Kenya Commercial Bank (KCB) appointed a receiver manager to take over operations of Mumias Sugar Company, a move that has dashed hopes of reviving the financially struggling miller.
The bank appointed Mr. Ponangipalli Venkata Ramana Rao of Tact Consultancy Services as the receiver manager, who visited the factory on September 24, 2019, and served management officials with documents on the latest developments at the miller.
According to a letter from Tact Consultancy Services dated September 24, 2019, the receiver manager was appointed to take control of the company's operations due to outstanding debts.
Kakamega Senator Cleophas Malala has vowed to challenge the move, which has been met with resistance from the county government.
County Chief Wycliffe Oparanya had unveiled a report three weeks ago prepared by a taskforce detailing a revival strategy for the miller, which included plans to appoint an administrator to protect the ailing miller from being wound up.
"The county government commits to consider in the upcoming supplementary budget, to establish a fund that will take care of cane development at a conceived budget of Sh 100,000 per hectare," said Mr. Oparanya.
