This archive report was first published on 10 May 2020.
On May 10, 2020, Mumias Sugar factory, a struggling miller, was set to resume ethanol production after striking a deal with the taxman.
The Kenya Revenue Authority had stopped the miller from selling ethanol produced at the factory, demanding a Sh100 million bond. However, thanks to a deal with KCB Bank, which had guaranteed Sh10 million, the miller is now free to start operations.
Kakamega Governor Wycliffe Oparanya, who is spearheading the revival of Mumias, expressed confidence that the miller would take about Sh1 billion to return to profitability.
“We are now at the moment free to start the operations immediately some ethanol had been produced but could not be sold,” Oparanya said.
He also revealed that they are working on the 10,000 nucleus estate to plant cane, with 2,500 acres already ploughed with seed cane.
“We have already ploughed 2,500 acres with seed cane and intend to have the entire 10,000 acres planted,” said Oparanya.
