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Munya Outlines Conditions that Will be Factored in the Leasing Agreement of Privatising Mumias and Nzoia Sugar Factories

Agriculture CS Peter Munya defended the decision to privatize Mumias and Nzoia Sugar factories saying the move is aimed at streamlining the operation of the two companies.

Munya who was speaking on Monday at Nzoia Sugar factory Kanduyi Constituency Bungoma County, in a meeting that brought together various political leaders including Devolution CS Eugene Wamalwa and Kakamega governor Wycliffe Oparanya, said the process which has stalled because of legal issues will factor various issues including the interest of farmers and workers.

“We will release the factory to a good capable investor with conditions that the investor takes all workers, accepts agreements made between the company workers, outgrowers’ interests, say how much he will invest in to avoid brokers coming in and have performance bonds to reach our targets. All these conditions will be in the lease agreement,”

said Mr. Munya.

Oparanya who supports the move to privatize the companies said the National Governments’ decision to waiver debts owned by the two companies will streamline the privatization process.

“The waiver on Nzoia and Mumias Sugar Companies debts will help the companies attract capable investors who can streamline the industry,”

said Oparanya.

The decision to privatize Mumias Sugar and Nzoia Sugar has been met with a lot of criticism from local leaders who say the process has been marred with a lot of secrecy.

The National Government has waived a 62 billion debt owed by Sugar Companies around the country. Nzoia Sugar debt runs to approximately 11 billion while 20 billion is owed by Mumias Sugar Company.

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