Kenya's struggling Mumias Sugar names new CEO
09 July 2015, 22:01
Nairobi - Kenya's cash-strapped Mumias Sugar has named a new chief
executive officer after receiving a 1 billion shilling ($9.93 million) bailout
from the Kenyan government, the company said on Thursday.
Mumias said Errol Johnston, who previously headed the
company from 1998 to 2001, would take over from Aug. 1.
Late last month, Kenyan President Uhuru Kenyatta authorized
the bailout and said managers who ran down the firm would be investigated for
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Kenya's struggling sugar industry has been protected against
cheaper imports by trade barriers but has faced years of decline caused by
mismanagement, outdated farming methods and corruption.
Kenyatta ordered Mumias, Kenya's biggest miller, to use the
cash to pay off debts to farmers who supply it with cane and asked Finance
Minister Henry Rotich to ensure cheaper imports did not get across its borders.
It is not clear how many people are directly employed in the
sugar sector but experts estimate it supports about four million people,
including farmers, transporters and traders.
Kenya was granted a one-year extension of sugar import
limits from the regional trade bloc Common Market for Eastern and Southern
Africa (COMESA) to revamp the ailing industry, officials said in March.