Day Mumias staff rejoiced after Sh5,000 pay for a year’s work

Workers at the troubled Mumias Sugar Company had a rude awakening two months ago when they were paid a token of Sh5,000 each after going without salaries for several months.

However, this did not dampen their spirit. They were elated after receiving the cash, saying it was better than nothing.

The workers have been pushed into debts and are experiencing tough times after the miller started taking a beating from piling debt and financial ruin.

The miller is currently grappling with debts amounting to Sh20 billion and has been pushed to the brink after key operations were crippled by the financial woes.

Mumias town and neighbouring markets of Shibale and Ekero were bustling with activities before the miller’s fortunes got into headwinds.

But their fortunes now mirror that of the ailing sugar miller.

SALARIES
Acting chief executive officer Patrick Chebosi said the decision was made to pay the workers the amount as a motivation for sacrifices they were making in their duties despite the turbulent financial times the miller was going through.

“There was so much excitement among workers, not because the amount was much but rather because of the sacrifices we are all making to get Mumias Sugar back on its feet,” Mr Chebosi said.

Workers have gone without salaries for the last 12 months. The miller owes workers close to Sh1 billion in unpaid salaries.

But that has not dampened their morale as they continue reporting to work normally, keeping the faith in efforts being made by the management team to reverse the financial woes bedevilling the miller.

Despite the woes that have crippled operations, the management is unrelenting in their efforts to salvage the firm from collapse.

ECONOMY
On Monday last week, the miller restarted ethanol production after frantic efforts by management officials, led by Mr Chebosi, who approached a neighbouring miller — Butali Sugar Mills — for supply of molasses and bagasse to kick start operations.

The company shutdown operations five months ago due to a crippling shortage of raw material in its catchment area and a myriad of financial difficulties.

The powerful roar of the mills and the white smoke curling out of the giant chimneys may be long gone but the management and workers have vowed not to let the miller go under.

In an interview at the factory, Mr Chebosi said if Mumias Sugar is allowed to collapse, the ripple effect on the region’s economy would be devastating.

The situation has been compounded after Kenya Power disconnected power supply due to non-payment of Sh2 billion debt.

BAIL OUT
Mr Chebosi said an injection of Sh100 million at the moment would make a lot of difference by facilitating resumption of cane milling and pay farmers delivering raw material.

“If we are able to get the money and start off in a small way, we shall be able to generate some income which will enable us to resume critical operations. At the moment we are unable to start due to financial difficulties,” he said.

The miller plans to roll out a cane development programme covering 60,000 hectares in its catchment area to improve supply of raw material in the next three years.
The plan will depend on when the National Treasury will release the Sh3 billion bailout the miller has requested from the government to be able to restart milling and sustain other key operations.

RAW MATERIALS
Mumias Sugar has planted 500 hectares of seed cane for supply to farmers during the next planting season.

“We have debts amounting to more than 20 billion but as a management team, we have managed to prepare a revival plan that will in the next three to four years ensure the miller is back on track, financially,” Mr Chebosi said.

Board chairman Kennedy Ngumbau Mulwa said the requested Sh2 billion from the National Treasury will be key in restarting the firm’s operations.

“We have put in place a viable plan that will put the miller back on track if the money we are expecting from the National Treasury is released,” Mr Mulwa said.

He said farmers had agreed to deliver raw materials when the firm resumes came crushing.