State seeks nod to cancel Sh118b sugar firms’ debt.
More than Sh117 billion debts owed by five struggling State sugar companies will be written off by the government before they can be leased to private investors if Parliament approves a plan by the Treasury.
The plan will also see run-down factories sold and land leased to the bidders picked to commercially run Nzoia Sugar, South Nyanza Sugar (SONY), Chemelil Sugar, Mumias Sugar, Muhoroni Sugar and Miwani Sugar to construct modern plants.
Of the Sh117.64 billion, Sh65.77 billion relates to loans owed by the five mills to government and Kenya Sugar Board /commodities fund, Sh50.144 billion relates to tax penalties and interests as at June 30 this year while Sh1.71 billion relates to balances owed to farmers. Reads the memorandum: “In view of the above, the National Treasury submits the Memorandum on Action plans to revive and commercialise the State-owned sugar companies.”
By Doris Kamene.