Who sold Webuye paper mill

The news in the papers is shocking, Webuye paper mill was sold for 900m after receiving Sh1 billion from the government for refurbishment. Apparently the “(The) Solicitor-General is seeking judicial redress in court for immediate recovery.” the Sh1 billion, you would expect for the recovery of the factory.

Genesis 25:30-34
30 He said to Jacob, “Quick, let me have some of that red stew! I’m famished!”
31 Jacob replied, “First sell me your birthright.”
32 “Look, I am about to die,” Esau said. “What good is the birthright to me?”
33 But Jacob said, “Swear to me first.” So he swore an oath to him, selling his birthright to Jacob.
34 Then Jacob gave Esau some bread and some lentil stew. He ate and drank, and then got up and left.

So Esau despised his birthright.

Malachi 1:3 but Esau I hated, and made his mountains desolation, and gave his heritage to the jackals of the wilderness.

Acha ukutwe na muthamaki defence force, news like this we put under the carpet

That company, amongst others, the government should have paid someone to take it for free.

RaiPaper? A front for the political families in business.

Very rudimentary summary and the rest is irrelevant. Pan Paper mills has undergone 2 bailouts. Former President Kibaki provided 2 Billion. 1 billion emergency bailout and 1 billion loan. That loan is still pending. Unfortunately once it was exhausted the plant halted again. President Uhuru learnt from that mistake and this time the 1 billion bailout went to pay creditors just like the 1 billion bailout to Mumias which was paid to farmers outstanding debt. Once Pan paper small creditors were paid, they couldn’t sue for dues and halt next stage. The plant was privatized soon after. At privatization the bidders considered how much they will need to spend to modernize it since the equipment is pre 1970’s. They also had to deal with loans still owed to large creditors like 1 billion to government. The highest bidder was Rai group at 900 million with a financial plan to spend 5 billion to replace the old machinery.

Note the plant is technically obsolete as it stands. It uses too much electricity from grid or diesel generators to be profitable. It also discharges liquid and gas pollutants above the prescribed directives of NEMA. Rai Paper had to halt operations 2 months after buying it so that it replaces one boiler with a newer one to meet regulations from Nema. Now they are progressively modernizing it and employing more people as it moves forward. Its also in order for government to start demanding a payment schedule for its loan.

angechoma hizo machine alete ngombe za brookside hapo

How would you have approached the whole issue and how much do think the paper mills were worth at that time?

You’ve left out the issue of the forests…

It has a nuclear artificial forest cover that it can grow and harvest at maturity. Other similar artificial forests can supply them if the follow KFS guidelines. One thing for sure is that they can’t accept indigenous trees into the plant.

You would expect that both viability and risk assessment is conducted, to help facilitate a targeted approach and prioritisation of available funds.

What did they do with all that money, it is sufficient to build more than one paper mill; totals to about USD $ 300 000 million, where were they importing the machinery from, planet Mars! What machinery still required replacing, after spending all that money to necessitate the sale?

How long did it take for the new team, of Rai Paper to switch the said dilapidated engines and machinery on upon purchasing Webuye paper mill; 1 year, 1 day or it was never switched off!

Was the Webuye management team not aware that the paper mill was required to conform to NEMA regulations and hence prioritise replacing the boiler?

Why do these companies flourish once they have been taken over by Indian’s?
Both Mumia’s Sugar and Webuye Paper Mill are super viable and were financed sufficient to restart them, prioritisation…….poor human resourcing at the helm = gross criminality orchestrated upon the people.

Why are we so fond of doing things upside down, to fail, so we sell. This is the trend in Africa as a whole. No state institutions are ever sold until large sums of tax payer’s money has been pumped into them. WHY

Can we see that machinery worth $300,000? Remember this is is a large industrial size mill.

Who did what with that money?

Companies flourish under privatization since the investor is putting their own money and has no one to rescue them. That’s is common knowledge. That is why it was privatized. Pumping more tax payers money without complete overhaul and new plant is useless. As soon as the bailout cash is exhausted the mill is closed.

Their largest debtor is Kenya Power. When webuye paper mill was being sold, it was technically insolvent and the bid would have been -ve. Its liabilities far outweighed its assets. Its only asset was the land. The plant was declared obsolete. Once government paid its small creditors they couldn’t sue for dues. Leaving only Kenya Power bill which the investor was to absorb. The last asset the investor got was the webuye licence to grow, cut, mill and buy from other artificial forest farmers. Treasury is done with panpaper for good. Next up is the privatization of Mumias, Sony, Chemilil, Muhoroni and Nzoia sugar factors as one company so that the can be managed effectively and they wouldn’t need bailouts anymore.

Eishhh!,are you an activist?

Why can the factories not run in the model of cooperatives, some outperform private sector companies? They significantly improve the welfare and transform entire communities. They will not require any government bailouts, the members will have a vote to cast out ineffective directors. Politicians will also not have a say on who is recruited.

The final outcome of privatisation is, the farmers will be turned into a horde of slave labourers. Many private companies deliberately lower price of raw material, creating despair and debt, an arm twisting tactic, which force farmers to sell out to the private owners; destination will be the slums, which will create more problems.

Someone suggested that Webuye should have been sold for Ksh 1. Let the government run a pilot, hand over either Mumias, Sony, Chemilil, Muhoroni or Nzoia to the sugar growing community for Ksh1, see how they mobilise and organise, their lives will depend on it.

No one has banned cooperatives from bidding in any privatization process. They were not banned from bidding for pan paper and not any other companies.

Theory over reality.

One crucial responsibility of any government is to enable its citizens and not to pit them against competition which has mileage over them.

The first time farmers get to know about the intention to sale is when the sale has already occurred.

One thinks that the government ought to consider communicating directly to the farmers its intention to relinquish responsibility of the factories, whilst offering them an unconditional right of first refusal to take ownership. If there is no interest; put it out to other Kenyans before seeking external buyers. It is possible for farmers to organise into a partnership which would safeguard their welfare and give them a greater say.

That’s is a lie, the privatization was announced in all medium, six months in advance as required by law. How did all MCA’s, MP’s, governors, readers, leaders, farmers etc miss it.

Please don’t make excuses. Its also illegal for government to favour anyone. That alone is a reason to cancel it.

Lastly stop quoting anonymous groups which may or not exist. When you say farmers or cooperatives name them. Mentioning theories shows a detachment from reality. Say in Bungoma there is xyz cooperative of 1000 farmers who have been in farming and business for X no of years and a capital base of x amount they are offering to put into this venture.

Nothing is more irresponsible and foolish that giving people something they don’t want, can’t manage and have no capacity to handle in the name of inclusion.


Debtor or creditor?

Do you have Kenyan examples?

Sorry creditor

Which cooperatives in Manufacturing outperform private sector companies??? KCC and KPCU are examples of cooperatives that wrecked havoc in their sectors when they collapsed!!
And who told you cooperatives are not prone to political manipulation??