MUHORONI, KENYA: Muhoroni Sugar Company faces closure after failing to sell its sugar to settle Sh500 million debts.
The company’s General Manger Anderson Oloo said unless something is done urgently, the company risks grounding its production.
‘‘We are unable to sell sugar and our stores are full. We are in a state of desperation. By Saturday, if anything is not done, we will have no option but to close down,’’ said Oloo.
Currently, it has 30, 000 tons of sugar worth Sh325 million lying in the stores while it owes farmers Sh270 million since February.
With company’s stores full, Mr Oloo said they only have two options; either to stop production or look for alternative store in Miwani Sugar Company.
‘‘But, if we are to resort to Miwani stores, then we will have to part with additional cost of Sh300 per bag. This will even make the final product much expensive,’’ he said.
The General Manager revealed that already some suppliers have stopped transacting business with the company until what is owed to them is paid in full.
Though the company is working optimally and produces 150 tons of the commodities per day, Oloo said that since the week started, they have only managed to sell 1,300 bags.