Team wants county to run sugar factory

Kakamega Governor Wycliffe Oparanya receives a task force report on Mumias Sugar Company from Trade Executive Kasim Were yesterday. [Duncan Ocholla]

Kakamega County Government should explore ways of taking over management of the troubled Mumias Sugar Company as a key step towards reviving the miller, a task force has recommended.

In its report handed over to Governor Wycliffe Oparanya yesterday, the team proposed that the county should use part of its revenue to buy shares of the ailing miller as it moves towards full control.

“Kakamega County should bid to take charge of the miller’s administration role through the court process as it has the human resources, financial muscle and the public goodwill to manage the revival of the company,” the report states.

The report further proposes the county finance department to centralise billing for rates, licences, permits, cess, rent and other levies especially for manufacturing companies and incorporate them in the county’s annual Appropriation Bill. The cash raised can be used to purchase a stake in the miller with the long-term goal of the county having majority shares.

The report recommended establishment of a fund dubbed “Oparanya-Inyingo Fund” which will take care of cane development since over 4,294.8 hectares of land under the nucleus at Mumias Sugar Company is owned by Government. The land was just leased to the company for growing sugarcane.

The report says that under the “Oparanya-Inyingo Fund”, a cane development package of Sh100,000 per hectare should be established as a revolving fund to entice farmers who had uprooted their cane.

The task force committee wants the county to re-organise the Kakamega County Micro-Finance Corporation to develop a fully-micro finance and the county’s investment agency to take up roles of the collapsed Mumias Sugar Outgrowers Company and the Mumias Outgrowers Savings and Credit Company.

The team wants the county government to appoint a caretaker committee to oversee the implementation of its proposals.

“The county will review the existing Sugarcane Fund regulations and have it aligned to the task force recommendations,” stated the report.

The task force has listed names of at least 20 individuals suspected of running down Mumias Sugar Company and wants them prosecuted.

The names that were handed to Oparanya yesterday by the task force committee chairman Kassim Were will be forwarded to Directorate of Criminal Investigations.

The names are contained in a sealed envelope.

According to Mr Were, the names of those suspected of fleecing the company though dubious transactions includes local politicians, former and current managers and unscrupulous businessmen.

The governor said his administration will also put a caveat on all Mumias Sugar Company land transactions to protect the assets that the board wanted to lease to raise revenue for running the company.