Miller in Sh305 million hole seeks to freeze tax remittance

Muhoroni Sugar

Muhoroni Sugar Company has asked the Government for Sh305 million to clear its debts and resume normal production.

Joint receiver managers Fredrick Kebenoi and Asa Okoth said they had already written to the National Treasury requesting the money.

“We are banking on the Government to help us out of this situation that has also seen the company cut production by more than half in less than a year. The situation is likely to get worse,” said Mr Okoth.

The State has an 83 per cent stake in the company, which owes farmers Sh190 million and is also grappling with inefficient machines and an irregular supply of cane.

“We have been receiving as little as 2,000 tonnes of cane per day, down from 19,000 in December. That is why we can’t pay the farmers, workers and maintain the company. We have never asked for a bail-out before but now we need help,” Okoth said in a statement.

The Kenya National Sugarcane Farmers Union wants the State to stop collecting tax from the firm until it stabilises.