A farmer sorts out his sugarcane at a farm in Siaya County on February 10, 2016. [PHOTO/nation.co.ke]
The closing down of alternative revenue sources at Mumias Sugar Company is the key reason behind the MSC's failure to pay its staff in the last five months.
The recent closure for annual maintenance similarly cut down income from sugar sales and curtailed the company's ability to meet its financial obligations.
Today, sugar is their only revenue generator after they shut down their water bottling plant and sale of electricity to the national grid and have now been grappling under the recent suspension of ethanol production.
The company also owes its employees close to Sh500 million, a figure that has accumulated since February.
“For now we are waiting for the Sh500 million that the government has promised the company so that we can pay part of the five months arrears, but we expect normalcy to resume once we start milling,” said CEO Nashon Aseka.
Even with the recent resumption of milling, the company will still not be out of danger as it will lack enough cane to mill as a result of the severe shortage in its zone.
“My focus is on cane development, unless we get sufficient cane for milling, then we shall not be in business,” he said.