Mumias sugar company, was among the top producers of sugar in the entire East African region that saw kenya's economy improve during the rule of former president Mwai Kibaki. Since when the huge machine went off, the country's economic status have been depreciating slowly by slowly until covid-19 pandemic almost pulled the economy to the negative side. The fall of mumias sugar company was a big blow to the economy since many people lost their jobs, many farmers had a difficult time to shift to other businesses rather than sugarcane farming. Some of the reasons that led to the fall of this huge company are
1. Farmers received debit payments because of the collusion by staff to pay ghost farmers instead of real farmers.
2. Poor governance, investment in project that never gave returns and excessive borrowing that resulted in loss of the cash required to pay cane farmers for their deliveries, leading to delays in payment that demoralised them and they started uprooting the crop from their farms.
3. The commercial department diverted ethanol meant to be sold in Tanzania and also the imported molasses tankers never arrived at company.
A report that was presented by a task force on the revival of the giant miller blamed the high cost of production and poor farming model. It further pointed at malpractices by staff at the miller that resulted in loss of millions as another cause of the financial turmoil the once premier miller was facing.
Since when the company was technically declared insolvent as per the audit report for 2017/2018 financial year, the kenyans have remained in dark wondering whether the company will be revived or continue to rest in pieces.
The company had boosted almost 30 percent of the country's economy through sugar exportation and other by products. Citizen blames the western leaders for failing to push for revival of the company.
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