Mumias Sugar company (photo/ citizentv.co.ke)
Mumias Sugar Company managing director Nahason Aseka has called upon the government to bail out its operation.
The company is seeking a sh 4billion bailout from the state in order to realize it's turnaround strategy.
Mr Aseka said that it would take the company up to to five years to realize it's transformative agenda if the cash would be availed.
“The company has the potential of making profit to boost the economy of the region and the country. We need the money to make it profitable once again,” Aseka said.
He added that the company still owes it's creditors sh9 billion while sh1.5 billion is still needed for development and factory maintenance and this can be cleared if the firm starts making profit.
The MD says the miller is pleading with banks not to auction their property as it makes plans of revamping the firm.
“We will negotiate with the banks not to auction our assets in a bid to recover debts. They should give us time to focus on revamping the factory,” Aseka said.
The Miller had earlier been given sh 500m by the state in July as bailout which the MD said the cash was used to clear farmers debts.
Sugar Miller's chairperson Kenneth Ngumbau says that Mumias Sugar can produce upto 45% of Western regions Gross domestic product and 6% of Kenya's GDP if left to operate efficiently.