Useless statement from minister

The re-opening of the Webuye Pan Paper Mills has stalled, three months into a deadline given by the government.

Industrialisation Minister Henry Kosgey told Parliament that creditors had given unrealistic conditions to the government before they could allow for the re-opening to go on. Mr Kosgey reported that the lenders who are owed over Sh8 billion want the government to clear most of the arrears of the company.

The Kenya, Power and Lighting Company and Kenol Limited who are the main energy suppliers have remained adamant that they have to be paid first before they can even consider the move," he said.

Mr Kosgey said the creditors have further demanded that they be allowed to appoint receiver managers whose cost would be met by the government. The Minister said the government was considering invoking its sovereignty rights and re-opening the company through a court order despite the resistance.

Deputy Speaker Farah Maalim ordered that Committee of Implementation to investigate the matter after the government reneged on its commitment to re-open the company in June this year following a request by Webuye MP Alfred Sambu.

"This is the most useless statement I have heard. What the Minister is telling us we already knew," Mr Sambu said.