Sugarcane farmers and local leaders in Mumias are calling for a thorough investigation into the financial records of Mumias Sugar Company under receiver manager PVR Rao, following a recent ruling that upheld a Sh3.5 billion tax debt owed to the Kenya Revenue Authority (KRA), reports Standard Media. The farmers also want the Kenya Commercial Bank (KCB), which placed Mumias Sugar under receivership in 2019, to recover a Sh545 million debt, to make public a financial report detailing the company’s financial activities since the takeover. At a news conference in Mumias, the farmers expressed shock over the Tax Appeal Tribunal’s recent decision allowing KRA to collect the tax arrears.
In a statement read by former Mumias MP Wycliffe Osundwa, the group questioned how the company had accumulated such a massive tax burden. “When the receiver manager took over, there was ethanol and sugar in storage, as well as acres of standing cane,” Osundwa said. According to him, at the time of the takeover, there were 700 bags of sugar, each weighing 50kg and valued at Sh4.2 million, along with 685,000 litres of ethanol worth Sh274 million. Additionally, the standing cane in the company’s nucleus estate was valued at Sh170 million. The statement further revealed that the receiver manager had operated the ethanol plant from February 2020 to December 2021, producing 2.2 million litres of ethanol valued at Sh880 million.
Another local leader, Ralph Wangatia, raised concerns over the current investor’s ability to run key revenue-generating units of the company, including the ethanol, co-generation, and water plants. “It appears that instead of reducing the company’s debt, the revenue being generated under the receiver manager is only sinking Mumias Sugar deeper into financial trouble,” Wangatia said. He also questioned how operations resumed at Mumias Sugar just two months after it was placed under receivership. “Where did the receiver manager get the cane when there was an insufficient supply at the time of closure?” he asked. The leaders are now demanding a full financial report from the receiver manager and calling on the Ethics and Anti-Corruption Commission (EACC) to launch an investigation into the company’s affairs.
On February 3, 2025, Rao hired Centenary Valuers to assess the company’s assets. However, according to reports, some plant machinery was allegedly excluded from the valuation process, preventing the completion of the report. An incident on February 25, 2025, was reported at Booker Police Post, further raising questions about the management of the company. Local farmer representative Welimo also claimed that parts of the ethanol plant had been vandalised, and while a suspect was arrested, no action was taken.
“We know the management was aware of the vandalism, yet nothing was done about it,” he said.With mounting concerns over financial mismanagement and the company’s future, farmers and local leaders are urging authorities to intervene and ensure transparency in the running of Mumias Sugar.
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