By JAMES ANYANZWA
NAIROBI, KENYA: Mumias Sugar Company has suspended all major capital expenditure as it prepares for the next phase of growth that will be exemplified by the coming on board of a strategic investor.
The Western Kenya-based sugar miller which is currently consolidating the operations of its diversified lines of business is now set for growth through joint ventures rather than the company’s own resources. Joint ventures require more funding than can be provided by internal sources.
Chief Executive Peter Kebati said the company has so far achieved its internally generated growth by expanding productivity and enhancing the sales of its diversified range of products.
“We have completed what we needed to do. We have increased our production capacity with our installed capacity currently standing at 270,000 metric tonnes of sugar per annum,” he said.
ORGANIC GROWTH
“We have also completed our cogeneration, ethanol and water plants. These projects need time to stabilise and start generating sufficient revenues for our organic growth,” Mr Kebati told The Standard.
He said the next phase now is the Tana and Athi River Development (Tarda) sugar project along the coastal region. “This is going to be a different type of business model. We are looking for potential partners, strategic partners who have experience in large scale irrigation schemes,” he stated.
He said the company is set to diversify the risks inherent in its organic growth.
Mr Kebati disclosed that the company is shopping for a strategic partner to inject fresh capital and provide technical expertise towards the development of the integrated Tarda sugar project.
The miller, which formed a partnership with Tarda, is looking at the Greenfield project as an opportunity for long term growth and risk diversification.
