Ruto Writes Off Entire Ksh 117B Debt for Kenyan Companies

President William Ruto has revealed that his Cabinet authorised the State to write off Ksh117 billion owed by five government-owned companies.

In an address at a stopover in Mumias on Sunday, August 27, the Head of State noted that the write-off was aimed at ensuring that the ailing companies, which were once leading in their industries, returned to profitability.

Specifically, Ruto noted that Mumias Sugar Company, which has reeled under a mountain of debt, will see its entire debt cleared. 

“I told you that I will write off all debt at Mumias Sugar Company. I did research of the debt and the Cabinet has approved,” the President told the crowd.

A photo of the entrance gate to Mumias Sugar Company.


African Markets

“Last week, I tabled a report in Parliament that the debt owed by our companies are Ksh117 billion and the Government of Kenya will write off all of it.”

During the address, the Head of State appealed to lawmakers to advance his course by signing the petition aimed at breathing life into the Kenyan state manufacturers.

Ruto also ruled out privatisation plans for struggling government companies, arguing that, at best, they will only be leased until they regain their ground.

Mumias Sugar has been struggling with multiple debts, including Ksh545 million owed to a local bank and was placed under receivership in 2019.

The sugar miller also reportedly owes a compounded Ksh4.3 billion to a slew of lenders, including French development finance institution Proparco.

Other struggling millers include Chemelil, South Nyanza, Nzoia, Muhoroni, and Miwani sugar factories.

In June, the Head of State promised to guard land owned by the miller as well as those privately owned by residents and used to grow cane for the company.

“The responsible ministry has sat down with governors and members of parliament. We have a plan since we do not want our efforts to go in vain, we have invested close to Ksh5 billion in Mumias but it still gets lost. This time round we must get it right,” he stated at the time.

“I will prepare the whole thing, take it to parliament so that we offset all the government debts, almost Ksh.50 billion. I want to assure you that this company will not go into privatisation, or be taken by people. The land will remain to be for Kakamega people. We will have a plan to benefit farmers.”

President William Ruto (in maroon Kaunda suit) leads Kenya Kwanza leaders for a church service in Bungoma County on August 27, 2023.


Source link