This archive report was first published on 30 November 2019.
Kenya Commercial Bank-appointed receiver manager Ponangapalli Venkata Ramana Rao has dismissed reports that the Mumias sugar factory will resume operations fully by January next year.
According to Rao, the timelines for resuming operations are not guaranteed due to the raw material crunch in the expansive Mumias sugar zone.
‘We can resume operations only if the availability of sugarcane is guaranteed,’ Rao said.
The factory closed shop in May 2018 due to financial difficulties and a biting sugarcane shortage.
Efforts to revive the miller have been ongoing, with the Kakamega County government, the receiver manager, and lenders brainstorming on a bailout plan.
However, the revival plan faces delays due to the ongoing challenges in the Mumias sugar zone.
SEE ALSO: Revealed: Greed that bled Mumias to its painful end
