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Citizen Weekly

Sunday, 11 January 2015

Mumias Sugar faces payment difficulties to Kenya Power

Mumias Sugar Company is considering halting the power manufacturing venture due to difficulty in payment to Kenya Power.
According to Dan Ameyo, the Mumias Sugar Company board chairman, the project has not paid off because MSC and KP have disagreed on the Sh40 million tariff.
As this is surfacing, the factory was last week plunged in total darkness when KP disconnected electricity over a whopping Sh25.3 billion bill accrued upto December last year.
It was like adding an insult to injury when Kenya Power staff descended to the factory in a commando-style and switched off the transmitter supplying electricity to the miller plunging it in total darkness.
According to Ameyo, the power company should reduce penalties slapped on MSC for failing to supply electricity to the grid saying it is “too high”.
An agreement seen by the Weekly Citizen shows that Kenya Power purchases a unit of electricity at six US cents and charges about 20 US cents per unit for power not delivered to the grid.
Mumias is also complaining that KP has all the time billed it under the domestic tariff often higher than the industrial one a fact KP has denier.
Investigations now reveal that the company has turned to use diesel power generators and solar power packs, something that has raised production costs at the ailing miller, once robust and leading in sugarcane production factory before sugar barons sabotaged its smooth operation by importing cheap sugar in the local market.