Government has injected sh5 million to rescue Mimias Sugar Company. In a deal which comes with stringent conditionalities, the government negotiated the billion shilling bailout with the miller even as parliament debates privatization of the other remaining public sugar companies.
Mumias has been through hard times in the last few years as market forces shape the sugar industry in Kenya. However, some of the reason for the aling sugar miller is traced to corruption by management and poor leadership.
The government has recommended the sacking of half of the management as well as retrenchment of over 300 staff of the company.
The government also ordered a new audit firm – KPMG – to take over from Deloitte and Touche that checked the company’s books on its downwards trajectory.
On Thursday, a demo at the miller turned violent leading to the company’s cane getting scorched in the melee.
Deputy President William Ruto negotiated the deal.