By Peter W. Makokha
Reviving the collapsed Pan African Paper Mills in Bungoma is an exercise in futility. The mill, which was conceived by the government in the late 1960s to utilise the vast forest plantations and develop the socio-economic status of the Western region remains on its knees. Much money and effort has been injected to revive the collapsed firm without success.
The mill currently under receivership is grappling under the heavy yoke of debt as the company owes Kenya Commercial Bank, Barclays Bank, Bank of Baroda, Eco Bank and Development Bank of Kenya.
It also owes International Finance Corporation slightly over Sh2.1 billion in equity. The banks have, on a number of occasions, resisted the move to reopen the mill before their debts are cleared.
The Kenya government injected a whopping Sh1 billion for the factory’s revival, which the Treasury asserted was used to pay electricity bills and salaries for the team that, was working there. The revival was never realised. Despite all efforts to breathe life to this company, the firm has been unable to roar back to life.
Numerous studies, on the other hand, have shown that it is uneconomical and practically impossible to resuscitate the collapsed company since not only have its mills been vandalised and equipment rotten beyond repair but also the availability of raw materials for production of paper at the mills isn’t within the reach of the company. This, therefore, calls for a paradigm shift in the thinking and approach of utilising this firm in an economical way.
The biggest hurdle to the revival of the mill is lack of wood. Wood is the only raw material for paper production. In its 30-year history, the company never bothered to invest in any agroforestry practices.
The firm relied on Kenya Forestry Service for its principal raw material. Currently, the forest reserves have been depleted to less than recommended levels.
It is a fact that the plant’s consumption of trees far outpaces the rate at which trees are replanted within the western Kenya and North rift regions. Yet a few individuals continue to imagine that the paper mill can roar back to life.
Where shall the company get trees to remain operationally efficient once reopened? Shall we not be going against our resolve of conserving our vital water towers if the company continues with uncontrolled de-forestation?
The mill was a great pollutant. Despite obtaining an ISO 9001 for product quality and ISO 14001 for ensuring environmental friendly operations, the company was a big source of pollution. It is true that this plant was a terrible health hazard to the innocent residents.
Emissions from this plant have been known to damage people’s lungs; lowering their resistance to diseases like pneumonia and influenza. Seepage from the sulfide ponds to the Nzoia River, which is the main source of domestic water to the residents is a fact. Furthermore, cases of increased skin ailments have also been noted.
Stench-filled air
It is true that Pan Paper has been dishing out doses of slow death. Records from the health facilities within Webuye town and its environs confirm that respiratory diseases especially among infants and the elderly have been on a steady increase and so is the resultant mortality rate.
Moreover, rusting of corrugated iron sheets is a common phenomenon. The residents are forced to replace the iron sheets on their houses more often than it is necessary.
Yet even without scientific proof of the level of pollution and its attendant poisonous gases, anyone would attest to the fact that it was extremely difficult to gulp a mouthful of fresh air in Webuye town and its environs.
Foul stench filled the air and could be smelled as far as 80km away depending on the direction of the wind. But that was not the only thing, ‘snowstorms’ of foam droplets from the plant`s waste ponds clouded the sky around Webuye town.
It is my considered view that the social and environmental impact assessment and the cost-benefit analysis associated with the reopening of the plant are all in the negative.
Aware of these issues, the government must not keep the hopes of the residents of Bungoma County alive.
The County must take a bold step and inform all and sundry that manufacturing paper in Webuye isn’t technically feasible and that it is in their own interest and that of the country that the plant is not reopened hence an alternative use of the plant is accordingly sought.
The County must seize the moment and seek alternative viable, economical and environmental-friendly ways of utilising some equipment at the plant before complete disintegration.
The County must come up with a sustainable long-term project to replace the collapsed mill so as not only to wake up the sleepy Webuye town but also provide alternative sources of income to impoverished residents.
A fertiliser plant is one such viable alternative. The county can agree with long-term lenders, suppliers and stakeholders and agree to come up such a joint venture.
Writer is a Policy Analyst and a PhD student in Monitoring & Evaluation.