Is Jubilee's on and off bailout plan for Mumias Sugar Factory viable?

The plan is viable because it seals loopholes for the management to swindle the funds which are budgeted for.

For instance the Sh500 million released recently was meant for cane farmers’ payments and this reduces chances of the money being used on something else.

Last time the Government released the money in bulk (Sh1 billion), the money ended up paying the management hefty salaries rather than using it to revive the company.

This might have prompted the Government to release money after getting the budget on what the money will be used for.

The crisis at the company can be attributed to former managers who abetted corruption, forcing the company to remain on its knees.

For the company to be fully revived the management structure should be revised to have more workers than the management.

Cane farmers should also be paid on time to lure them to continue planting cane and supply it to Mumias Sugar Company.

Former managers ignored the farmer who is the supplier of the raw material needed.

The former management wanted to get funds from the national government but they could not push the CEO to give a report on the progress of the company.

The management should also reverse the mode of operations to focus on workers and cane farmers who are the key stakeholders for the company.

Jubilee government has tried its best to revive the company by offering financial support.

The Government has given at least Sh 3.1 billion bailout to pay cane farmers and other suppliers and this has shown the interest the Government has had for cane farmers.

Isaac Bulemi is a cane farmer in Mumias

The mode the Jubilee government is using to release funds is wanting and this will not help the company recover.

The Government should consider releasing the money in bulk like Sh12 billion for the company to undergo proper maintenance, pay farmers and workers.

Paying farmers and leaving out workers will cause a crisis that will never end at the miller.

Jubilee is not committed to reviving the company yet the Government is the largest shareholder in the company.

By allowing cheap sugar imports from Uganda in exchange of milk, Jubilee meant that they had no interest in reviving the ailing sugar sector.

Nzoia Sugar Company is facing the same fate. To salvage the company, the Government should transfer its 20 per cent shares in the company to the county government.

The Sh3.2 billion for the company is a drop in the ocean, the company needs at least Sh12 billion to revive it.

Apart from the bailout to pay farmers and staff, there is need to invest more in farming infrastructure like developing seed cane, fertiliser supply, training of farmers on best farming practices among others.

The woes at the miller can only be addressed through close monitoring, and that can be best dealt with by the national government.

John Kizito is a cane farmer