Extra Sh2bn sought to rescue Mumias
What you need to know:
- Rev Musyimi argued that since “Mumias Sugar and Kenya Airways are among Kenya’s most important companies”, MPs should do everything needed to assist them get back on their feet.
- The Budget Committee had on Wednesday declined a request by the Treasury, made via the supplementary estimates, for an allocation of Sh2 billion to Mumias Sugar for a rights issue.
- Earlier in the day, Treasury Principal Secretary Kamau Thugge urged members of the Budget Committee to include the money in the supplementary estimates.
Kenya’s debt burden will grow by an extra Sh2 billion to finance the revival of Mumias Sugar Company. This is after MPs approved an increase to the second supplementary budget yesterday.
Budget and Appropriations Committee Chairman Rev Mutava Musyimi introduced an amendment to the Supplementary Appropriation Bill, the second this year, to enable the government look for the money.
Rev Musyimi argued that since “Mumias Sugar and Kenya Airways are among Kenya’s most important companies”, MPs should do everything needed to assist them get back on their feet.
“I hope that my colleagues, chairmen of Agriculture and Planning, can have a joint report on Mumias,” said Rev Musyimi, who also asked the House to demand a copy of the report on parastatals.
The National Assembly had earlier passed the second Supplementary Budget giving the government permission to spend an additional Sh198.3 billion in the remaining five days of the financial year amid protests.
DECLINED
The Budget Committee had on Wednesday declined a request by the Treasury, made via the supplementary estimates, for an allocation of Sh2 billion to Mumias Sugar for a rights issue.
But arguing that the financial year was coming to an end and thus the rights issue may not be held, the committee “deemed it fit to have the allocation deferred and included in the budget for 2015/2016.”
This would, however, not have augured well for the Jubilee coalition, whose heads were in Mumias on Wednesday, where a ceremonial dummy cheque for Sh1 billion was handed over.
Earlier in the day, Treasury Principal Secretary Kamau Thugge urged members of the Budget Committee to include the money in the supplementary estimates.
ODM Secretary-General Ababu Namwamba used the opportunity to thank the government for the bailout.
“Anybody who opposes the bailout of Mumias Sugar will be declared an enemy of the people of western Kenya. The breakdown of Mumias was perpetrated by people who are well-known. Instead of speaking out against the revival of Mumias Sugar Company, we should be going after those people,” said Mr Namwamba.
Said Majority Leader Aden Duale: “We’re saving a region of more than three million people for livelihoods and votes. The votes will come in 2017.”
