Mumias Sugar Company Owes Busia County Sh70m in Cess

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Director Medical Services Busia County, County Director Alcohol Drinks, Patrice Lumumba and CEC for Finance and ICT Leonard Obimbira at Hotel Levantes in Amagoro on Monday.

BY CG REPORTER

Mumias Sugar Company owes Busia County Government over Sh70 million in Cess since the advent of devolution in 2013, Sub County Revenue Officer Teso North Theophilas Chitechi has revealed.
Speaking during a County Revenue Enhancement Strategy workshop at Hotel Levantes in Amagoro on Monday, Chicheti said the Sugar firm has shown no sign of making the payment anytime soon.
” We request Busia Governor Sospeter Ojaamong to take action by communicating with the management of the Sugar Company to remit the outstanding debt.
We know the firm has no money to pay even the Sugarcane farmers. There is no cane crashing after the factory closed for the next two weeks,” he said.
Chitechi said the outstanding debt has affected the Cess budget. The last time the firm made a down payment of Sh3million was in 2014 after the Governor wrote to the sugar firm.
County Executive Committee Member for Finance and ICT Leonard Obimbira said it has not been easy for the County Government to recover on the debt they owe us.
The CEC member said they are hoping to open a new chapter and begin talks with the sugar firm to harmonize the relationships between the two institutions, adding that they would wish to recover everything so that we can begin on a clean sheet,” he said.
Mumias received Sh2.16 billion government funding from the National Government between June 2015 and April last year.
The firm is implementing a turnaround, which includes debt restructuring. The National government is its majority shareholder.