Ruto Clears 117B Ksh Debt for State-Owned Firms
Five government-owned companies owe the State a total of Ksh117 billion, as disclosed by President William Ruto, whose Cabinet authorized the State to forgive this debt.
In a speech at a stopover in Mumias on Sunday, August 27, the Head of State stated that the write-off was intended to ensure that the once-dominant but now-struggling companies return to profitability.
Ruto specifically mentioned that Mumias Sugar Company, which has been struggling under a mountain of debt, will have its entire debt wiped out.
“As promised, I will cancel all debt at Mumias Sugar Company. The Cabinet has approved my investigation on the debt,’ the President told the crowd.
“I submitted a report to Parliament last week stating that our companies owe Ksh117 billion in debt and that the Kenyan government will forgive the entire amount.”
During his address, the Head of State urged legislators to support his agenda by signing the petition to revitalize Kenyan state manufacturers.
Ruto also rejected proposals to privatize struggling government companies, arguing that, at best, they will be leased until they recover their footing.
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Mumias Sugar has multiple obligations, including Ksh545 million owed to a local bank, and was placed in receivership in 2019.
Reportedly, the sugar miller owes a total of Ksh4.3 billion to a variety of creditors, including the French development finance organization Proparco.
Sugar factories in Chemelil, South Nyanza, Nzoia, Muhoroni, and Miwani are also ailing.
In June, the Head of State pledged to protect miller-owned land as well as privately-owned land used to cultivate cane for the corporation.
“The responsible ministry has met with administrators and parliamentary representatives. We have a plan because we do not want our efforts to be in vain; however, despite investing close to Ksh5 billion in Mumias, it continues to be squandered. We must get it right this time,” he stated at the time.
“I will prepare the entire proposal and present it to the legislature so that we can pay off the nearly Ksh.50 billion in government obligations. I want to assure you that this company will not be privatized or acquired by individuals. The land will remain in Kakamega’s possession. We will develop a plan that will benefit producers.”
Ruto Clears 117B Ksh Debt for State-Owned Firms
