Govt to secure Pan Paper title deeds
07 October 2013, 14:12
Nairobi - Industrialization Cabinet Secretary, Adan Mohammed, reaffirmed government’s position to put in order title deeds belonging to the grounded Pan Paper Company as it bids to lure new investors to the firm.
He said such a move will ensure the investors were not inconvenienced.
“We will acquire the licenses for the potential investor to ease access to the materials in the forest. We will also ensure all the land owned by the factory is in proper order,” said Mohammed.
However, the government official could not comment whether the government would increase the taxes on imports of raw and finished paper to protect the revived paper mill.
Kenya imposes an import duty of 25 percent on raw material and 10 percent on finished paper products thus losing business to countries like Egypt and Tanzania.
The grounded paper mill has the potential of producing 100 000 tonnes of fine paper, Kraft, liner, board and news print yearly.
Pan Paper ceased operations in 2009 after incurring spiraling debts.
The firm owed such financial institutions as Kenya Commercial Bank, East African Development Bank, PTA Bank, Farallon Bank and the East Africa Development Bank.
The government’s initial plans to revive the paper mill came to a halt in 2010 after the Treasury budget could not accommodate such plans.
– CAJ News