By JOSEPH OJWANG.
Chemelil Sugar Company is appealing to the national government for a bail out of Sh. 258 million to save the factory from being insolvent.
A Parliamentary Committee on Labour and Social Welfare that visited the factory on a fact finding mission on Friday was told the funds will go towards the maintenance of the factory amongst doing other activities.
The Company head of finance Emmanuel Ngala says the company is currently facing liquidity challenges that if not addressed on time will lead to the collapse of the factory.
Ngala says the Company has tried in vain to source for funds to put the factory that stopped crushing in March this year back into operations.
He announced that there is an updated from the parent ministry that that they received that a Cabinet Paper has been prepared for government support to all the public mills before privatization.
Ngala told the Committee led by Bomet East MP Ronald Tanui that workers at the Company who are in salary arrears for 17 months totaling to Sh. 844 million are now living in abject poverty.
Tanui says the Committee got a petition letter from the local Kenya Union of Plantation Workers over the salary arrears prompting them to visit all the state owned mills to speak to the management and workers.
He lauded the union for their quick action to seek for help and direction from the National Assembly in a bid to save the situation.