I don't remember reading this article. There have been a lot of talk of a rights issue but never a specific company to be bought. http://www.theeastafrica.../0/-/70n0rc/-/index.html

Its lifting of comesa safeguards which will hammer mumias last nail to the coffin

All signs indicate that Mumias has no future in Kenya... its a no go zone for me

Lifting of comesa rules is the shot it the arm that GK needs to streamline the sugar sector, dark days between then and the reforms

I agree. Law of Natural Selection. If you can't keep up, kufa pole pole bila kelele nyingi! GoK would be forced to intervene instead of standing by and watch Kenyans in the sugar belt go jobless (Though I'm sure they'd adapt)!!

This is not just a Mumias Sugar issue. It's a Sugar industry Issue.Mumias is in a very tight spot. I think apart from the issue with the illegal sugar imports by it's former management, a lot of their problems are actually external (and macro in nature) and it will take more than just them to fix it.

What options exist apart from Short term cutting of expenses? Subsidy (During this time when GoK is cash hungry)? Diversification (Into real estate in the footsteps of "The Monkey" and others) and focus on widening their revenue base in general going forward? This tunnel bana?

I'd say good counter though for speculation because of volumes available and Price.

Keep away from it. Cheap sugar is coming soon...unless govt imposes high taxes

@Njunge

Just as @Mawinder said, the source of the cheap sugar not withstanding, it has made it's way into the country many times before even with the barriers, now imagine without barriers.

What if in the meantime Mumias and other companies shore their losses by being allowed to gain by being on the fore front of cheap sugar imports? Is this feasible?

Why continue wasting reserves with an unviable business? Redeploy the resources to other profitable ventures or close shop we share out whatever remains.

And anyway, who does want a burgain? (cheap sugar)

For as long as there is this uncertainty shareholders will suffer losses on the market but when a solution to the current troubles comes eventually (whether return to profitability, an acquisition or a ....) it will be sweet for investors who have bought in at current prices.

Am baffled here...How is it a win win for those who got in at 3 bob while the share is trading at 2bob.
That's more like Lose Lose for those who got in at 3 Bob