Pan Paper Mills is set to be opened in the next three months after government announced it has secured a strategic investor.The investor, Rai Group has committed KES6bn over the next three years after purchasing the company’s assets .The Group is associated with several sugar industries, a plywood firm and an edible oil refinery in the country, is said to have purchased the firm for about KES900m, defeating  six other bidders.

Pan Paper Mills is set to be opened in the next three months after government announced it has secured a strategic investor.The investor, Rai Group has committed KES6bn over the next three years after purchasing the company’s assets .The Group is associated with several sugar industries, a plywood firm and an edible oil refinery in the country, is said to have purchased the firm for about KES900m, defeating  six other bidders.

This move is in line with government’s policy to revive collapsed industries. The factory closed down in 2009 after sustaining huge debts and poor management. This led to loss of jobs for residents of Webuye and hurt Kenya’s economy hard. In 2013, the factory was placed under a receiver manager, PriceWaterhouse Coopers so as to create structures of making the receivership process fast and easy. This would later ensure that investors buy the company which was already under private management.

Later in 2014, the government was accused of doing little to re-open it and save over 5,000directly employed people and another 30,000 indirectly. Its opening will see huge awakening of the paper industry in Kenya with hopes that paper products will go down, new infrastructural developments  like roads will be improved  increasing job opportunities and transport efficiency within the nearby region and community as well.

Last year, the government injected KES1bn into Mumias Sugar in Western Kenya  which has been characterized by mismanagement and high debts.

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