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The sugar crisis in Kenya and the collapse of Mumias sugar company
By Ahmed Kassim Wangara | Updated May 07, 2017 at 08:53 EAT
the-sugar-crisis-in-kenya-and-the-collapse-of-mumias-sugar-company
The main factory gate at Mumias Sugar Company

It is with absolute regret that Kenyans are busy wallowing over the artificial sugar shortage that is looming and tormenting the largest economy in Eastern and Central Africa.

​However as much we may claim to be well educated and groomed, we lack one of the basic social skills and tools which supplement education. That is research.We have trained our intellectual brains to the social media rather than the raw and congruent truth on most matters.

We rely and get our information from self-proclaimed ‘Consultants’ who rumour monger matters and affairs out of proportion and beyond our cognitive abilities.

We don't require Ipsos Synovate to explain that Mumias Sugar company used to account for more than 60 percent domestic production of the common sweetener.

With Mumias out of the picture and on its death bed, the other Miller's cannot produce enough sugar to meet the market demand and compensate for the shortage.

Putting into play the basic laws of Demand and Supply (You should understand this even if you did Domestic Science) you can easily grasp why the price is increasing in an alarming and irreversible rates.

It's either the government bails out Mumias Sugar Company through writing off the debts or we will forever live at the leniency of sugar barons who will take advantage of the situation to improve their illegal entrepreneurial skills commonly practised through hoarding.

I think the best way to bring Mumias Sugar Company back to its feet is to have a comprehensive farmer platform which can be done through reviving of Moco which may consolidate the scattered shares. This would easily facilitate the solving of Miller-Farmer wrangles.

The other way is to invite a serious investor who will inject a sizeable amount of money which can be utilised in paying off debts and reclaiming a good credit image. Booker Tate Management Limited can be recalled back and encouraged to re-invest into the sugar Miller and manage it all together like they did 20 years ago. Kakamega County Government can be able to inject a certain percentage of money into the industry which can later be converted into shares.

Otherwise, it hurts to see the country's top sugar milling giant on its knees. I stand to be corrected.

Those are my two cents on it. Take it or leave it. We demand Mumias Sugar back.


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