Kenya Power restores electricity at Pan Paper ahead of re-opening

Water Cabinet Secretary Eugene Wamalwa, Bungoma Governor Kenneth Lusaka, Bumula Mp Boniface Otsiula with Rai group of Companies Managing Director Chowdary Venkanna during a tour to Pan Paper mills factory in Webuye  (PHOTO: TITUS OTEBA/STANDARD)

Kenya Power has restored electricity at the Pan Paper factory ahead of its official re-opening later this month.

Electricity had been disconnected due to non-payment of a huge bill.

Yesterday, Water Cabinet Secretary Eugene Wamalwa, Bungoma Governor Kenneth Lusaka and Bumula MP Boniface Otsiula visited the facility to assess its revival progress.

Rai Group of Companies General Manager Chowdary Venkanna is overseeing the revival of the mill after Rai acquired it for Sh900 million.

He explained that they expected the factory to start working by the first week of September after its official launch.

“Now we are working on restoring water so that work starts immediately because we already have raw materials,” Mr Venkanna said.

He said they had already absorbed 200 former workers and expect to take back the other 200 by the first week of September.

“We have given them priority because they understand the job well,” he explained.

Mr Wamalwa said they were planning to audit all former employees so that they can be compensated.

“We are in talks with the Treasury and the investor so that all former employees can be paid their dues,” the CS said.

He said they were assessing the situation on the ground before the official launch that is scheduled for August 30. President Uhuru Kenyatta is expected to grace the occasion.

Mr Lusaka said rehabilitation works were going on well and asked the investor to consider employing locals so that they can feel the importance of having a local industry.

“I am very happy with the progress report. I hope the re-opening is going to change the fortunes of this county. Its collapse had rendered many people jobless and even broke some marriages,” the county chief said.

Mr Otsiula urged the investor to use local manpower instead of employing people from other areas.

IMPORTING MANPOWER

“Our people are jobless. Give them priority so that they can feel its importance. Importing manpower from far can’t be allowed,” the lawmaker added.

The investor, Tarlochan Limited, a subsidiary of Rai Group of Companies, plans to pump in Sh6 billion to reopen the factory in Webuye. The company bought the factory at Sh900 million from the receiver manager and lenders.

The collapsed factory has been undergoing a four-month rehabilitation, which includes carrying out a total overhaul of obsolete machines such as boilers.

Apart from acquiring Pan Paper the company also owns Raiply Timber Company, West Kenya Sugar Company and Menengai Oil Refinery Company.