Last Updated 14 years ago by Kenya Engineer
There is some light on the future of Miwani Sugar Company after the approval of a Sh11 billion investment plan by the Agriculture, Livestock and Co-operatives committee. The revival project had been halted earlier after a government agency raised questions over the ownership of land on which it’s to be built.
The plan proposed by South Africa-based Eaglefin Structured Finance Mauritius Limited will give 51 per cent of the revived sugar firm’s shares to cane farmers and out-grower societies. According to the plan, sugar farmers will not pay directly for the shareholding but will have their dividends used to pay the financiers over a 10- year period. They will however get full payment for cane deliveries during the term of the loan, foregoing dividends until the debt is fully settled.
The Mauritian firm owns a 20 per cent stake in the project and will act as managing partners. According to the Sugar (Amendment) Act, it stipulates that cane farmers and out-growers hold 51 per cent stake in all sugar companies which are set to be privatized.
The firm also wants to be allocated extra land for either purchase or on a long term lease of at least 60 years. It will also put in place a private insurance that would guarantee the government and external funders of the discharge of the promissory notes and payment respectively.
The Sh16.8 billion project is expected to be in operation by mid-next year. Construction is to start as soon as government approval is granted as they already had a commitment to their technology suppliers and had entered into fixed contracts.
The sugar company to be based in Western Kenya will have a capacity of 3,600 tonnes of cane per day. It will include a 30,000-ethanol production plant which will run an18-megawatt power plant together with bagasse, a by-product of cane.
-
Product on sale
AWEBook Volume 2Original price was: KShs 3,500.00.KShs 3,000.00Current price is: KShs 3,000.00.
