SUGAR MILL IN KISUMU COUNTY IN THE BRINK OF COLLAPSE

Jun 18, 2014 William Adoyo Business, Kisumu, News 0

Muhoroni Sugar Company is staring at a closure due to the influx of illegal imported sugar in the country. The companys Receiver Manager Assa Okoth says they are unable to sell their sugar as a result of poor market. Okoth says they stopped the sale of their production totaling 72,000 bags of sugar and urged the government to intervene.

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We have a stock of 72,000 bags of sugar which has been processed and we have no market to take them since our market today is full of cheap imported sugar which has increase in the country and totally polarize the market says Okoth the receiver manager.

He says they have no cash flow and that has continuously threatened their operations and called upon the national government to step in and save them from collapse. He noted that since they are in receivership they are not able to loan from banks and the two debenture holders, the government and the Kenya Sugar Board are not helping them to come out of the situation they are in at the moment.

Kisumu County Senator Prof. Anyang’ Nyong’o who toured the mill to check on the company’s capability of improving the county and the county residents economy and livelihood wondered why the debt was not cancelled during the last coalition government. Nyong’o said sugar companies should also enjoy the same privileges that the tea and coffee companies enjoyed when the last government wrote off the debts.

We want our sugar firms to have their debts be cleared by the government as in tea and coffee sectors in the country so as our people can benefit from their farm produce, Prof. Nyongo said.