Sugar manufacturing firm in Kenya, Mumias Sugar Company has resumed operations after five months of closure.
The development comes after government pumped Sh3.7 billion into the company in a bailout plan.
Nashon Aseka, Mumias Chief Executive Officer said the factory has started receiving sugarcane from farmers.
“The management has engaged stakeholders, including the Kenya National Federation of Sugarcane Farmers, to deliberate on a raft of issues that range from the thorny cane shortage crisis, financial difficulties, cane development and prompt payment for deliveries made earlier,” Aseka said.
He said the factory is expected to crush between 2,000 and 3,000 tonnes of cane daily in the initial stages, despite a price drop from
Sh4,800 to Sh4,100 this month. And farmers blamed this on cheap sugar imports.
The company closed for routine maintenance in May for three months but reopening was delayed due to a sugarcane shortage and financial constraints.
Meanwhile Mumias’ management has agreed to pay farmers based on prices to be revised every month by the cane pricing committee, which comprises key stakeholders.