Chemelil Sugar Company put under new receivership

Chemelil Sugar Company which is on the verge of collapse has been placed under new receivership.

The farmers wanted the government to save the company from possible collapse after operating in losses.

The new Receiver Manager Francis Ooko said the government will pump in money to revive the company to benefit the farmers.

The government is in the process of offering a bail out to cater for farmers’ arrears and factory maintenance, he said without mentioning the exact figure.

Ooko while speaking to KNA in Muhoroni Sunday said the company will resume the crushing of the cane and sugar production soon.

The company has remained closed for the last six weeks. It has been under receivership for long, been operating on losses and unable to pay farmers.

The manager who held discussions with farmers and stakeholders said he would use his expertise and experience to turn around the company profits.

The receiver manager also met Kenya Union of Sugar Planters Association officials Noah Opiyo (Secretary General) and Charles Anyumba and the two officials agreed to support the new management and ensure the plight of farmers is addressed.

Source: Kenya News Agency