Sh5bn not the answer to Mumias woes, good managers are
What you need to know:
- Runaway corruption, patronage and mismanagement are what bedevil the industry.
The government has pledged to revive the ailing Mumias Sugar Company at a whopping Sh5 billion, according to Deputy President William Ruto.
What did not come out clearly from Mr Ruto’s statement is whether the colossal taxpayers’ money will be a loan, grant, graft, gift, bribe, dowry, political goodies, donation, campaign money, et al.
The government pumping billions of shillings into sugar mills only to end up in people’s pockets is not new.
Both the government and defunct Kenya Sugar Board have done so for Miwani Sugar Mills, Muhoroni, Chemelil, Sony and Nzoia Sugar for years.
So what ails the sugar industry is not lack of money, not cheaply imported sugar, not a shortage of cane, not sugar cartels, not lack of state support and not lack of Comesa protection per se. Those are mere symptoms.
Runaway corruption, patronage and mismanagement are what bedevil the industry.
As such, the current board of directors, who presided over the looting, should not be allowed to continue running the firm. I recommend that Mumias be handed over to either strategic partners or receiver managers or both for a specified period.
ATHEMBO ONYURO, via email.
