The disaster that is Mumia Sugar – 4 billion bailout needed.

Apparently 4 billion is required to bailout Mumia’s sugar, the 3.2 billion that was given failed to stabilise the miller.

Farmers arrears stood at Sh900 million but now it is Sh600 million. Why is it that our companies never prioritise to pay farmers when they receive bailout funds, they suffer for no reason.

According to the CEO, ”The main challenge facing the State owned factory is lack of raw materials to crush and farmers’ arrears".

This is why we have a shortage of maize today!! Sugar cane farmers have reduced cane output due to non-payment, these is slave labor.

No more funds until the directors and senior management positions are reconstituted. Only 600 m to go directly to the poor farmers.
Apparently they are going to Audit themselves!!!, do they not have an external auditor to check the finances annually.

Hata this time Kidero ndio ameiangusha?


Let the damn thing collapse. Yawa ! ! !


All state owned Sugar mills are to be fully privatized this year. 5% workers, 25 % farmers, 50% investor and 25% GoK. Mumias, Sony, Chemelil and Muhoroni. All will be sold as one unit to end the menace of sugarcane poaching. GoK will takeover its debts while investors will have to spend a lot of capital to completely replace the plant with a modern one. Repair wouldn’t cut it.


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I think the mills should privatized fully so that they are run purely as businesses without having to accommodate myriad stakeholders interests that result as avenues for mismanagement and when this happens the government has to come up with bail out money. There are other ways of ensuring that the local community and the government benefits without getting into a joint shareholding model where they hardly get any dividends. For those who might argue that private entities will exploit cane farmers with low prices should realize that cane farming is not a social venture, therefore if not profitable the farmers should consider adopting other modes of farming like farmers from other regions.


The management was asking the govt to make it a non profit making organisation because they also have an objective of taking care of farmers and local community. such as multiplying and providing cuttings to farmers etc, this is kenya where everybody wants the other to pay for his incompetence. Go to public university and see the incompetence that is there, student meant to finish a degree course of 2yrs end up spending 5yrs. You submit a letter, you wait for a month and there is no response. You decide to go check what is going on, only to learn the letter got lost it never moved beyond the secretary desk where you placed it. Or you are told to wait for a signature which takes 2 month since he is never there.


Kwa hivyo tuseme the former mzungu CEO is a liar?

Ukiwa kwa industry uta realise being a private external auditor iko na changamoto. A board of directors employs you, you are to audit the company (which in most companies board na kampuni ni kitu moja, no seperation) and report to them!
This only works in sectors where there is a very serious regulator e.g CBK na hata hapo it has occasionally failed.


Its supposed to be profitable, problem is other countries subsidise their farmers so much, they end up killing agriculture in other countries. Solution then is to either subsidise farmers and liberalise the milling, or let anyone and everyone import Brazil sugar



Why are private Millers like Kabras and butali very stable? Our family has been selling to these Millers for over 30 years and 5 years respectively and as far as I can remember, our payment never went beyond a week after delivering cane. Is it a case of management?


Its a case of management (mis)

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Rivatex scam all over again where someone in government is eying the assets held by a parastatal and thus causes its total collapse and thus it will be sold to him bei ya jioni.

In the meantime, profit from alternative industries (mitumba and Brazil sugar).

I agree. Let it go or give it to some private company. Key word, give.

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:D:DI hadn’t even noticed this

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This was in reference to what happened to cereals board in the 90s, when it was ravaged. It caused many hardworking farmers to cut down or withdraw from cultivation of maize, we now have a significant shortage and extremely high prices.

Generally the high prices of many things, which were once in surplus is a shame. Farmers must be paid we cannot continue to tolerate propagating suffering in the farming sector and unnecessary debt bondage due to absence of responsibility among corporate caretakers.

This is a good start but there is also need for some farmers to own the complete process from farm to the shop, in the form of agricultural production cooperatives, which are a business. This happens in other parts of the world. As for unga we urgently need a few farmer owned milling cooperatives.

It appears there is a gap in the monitoring process which encourages financial abuse in state bodies. Auditors ought to file accounts to a Regulating Authority, where financial irregularities are found, they are flagged up for fraud investigation and gazetted.

Tano tena