President Uhuru Kenyatta has announced plans to revive Pan Paper Mills in Webuye, Bungoma County. He said that an agreement was reached with a strategic investor to purchase the heavily indebted factory, whose assets were on the brink of being wasted.
The factory, which has been idle for years, will also absorb the former employees, Uhuru said.
Western Kenya leaders among them Bungoma Governor Ken Lusaka were present when Uhuru made the announcement at State House on Thursday morning.
The factory will be officially handed over to the new investors next week.
The Head of State said the new investors, whom he did not name, will inject $60 million (Sh6 billion) to revamp the factory.
Sources said the Rai family that owns Raiply and Timsales Ltd is the new buyer.