Mumias out to recover Sh241m

Mumias Sugar Company Managing Director Coutts Otolo. Incoming company CEO Errol Johnston has exuded confidence in leading the transformation of the cash-strapped miller. FILE PHOTO | SALATON NJAU | NATION MEDIA GROUP

What you need to know:

  • But in an interview with a local TV station, Mr Odinga said transactions between the miller and Spectre International should not be politicised.
  • Among them are supermarkets and Spectre International Ltd, owned by the family of Cord leader Raila Odinga. Mr Otolo said Spectre owes the sugar miller Sh33.9 million in non-payment for molasses.
  • Mr Odinga said the purchase of the molasses was guaranteed by National Bank for Mumias Sugar Company.

The Mumias Sugar Company is seeking to recover Sh241 million from debtors, who have contributed to the firm’s problems.

Managing Director Coutts Otolo said yesterday lawyers would go after 56 firms that owe the millions.

Among them are supermarkets and Spectre International Ltd, owned by the family of Cord leader Raila Odinga. Mr Otolo said Spectre owes the sugar miller Sh33.9 million in non-payment for molasses.

“We do not go after an individual, we go after the company that owes us. That is what the lawyers are doing,” he said.

But in an interview with a local TV station, Mr Odinga said transactions between the miller and Spectre International should not be politicised.

He said the firm bought molasses on credit from the plant just like any other business entity.

Mr Odinga said Spectre also bought molasses from other sugar companies, such as Nzoia and Chemelil, and from Uganda.

“If the company owes money, it has nothing to do with politics,” he said.

Mr Odinga said the purchase of the molasses was guaranteed by National Bank for Mumias Sugar Company.

The leading debtors include Otifer Logistics (Sh36.6 million); Heykal Packers and Distributors Ltd (Sh29.6 million); Y H Wholesalers (Sh20 million); United Distillers Vintners Ltd (19.97 million); Rising Star Commodities (Sh17 million); Y H Wholesalers (imported Sh12 million); Petmark Distributors (Sh11 million); and One-Time Ethanol Debtors Local (Sh10.5 million).

Others are Cups Ltd (Sh9.6 million); Rongai Gen Commodities (Sh6.5 million); Uchumi Supermarkets (Sh5.8 million); Millenium Contractors Company (Sh5.59 million); Morganite Ltd (Sh3.05 million); Nairobi’s Ukwala Supermarkets (Sh2.8 million); Domma Stores (Sh2.28 million); and Unilever Kenya Ltd (Sh2.23 million).