East Africa's largest paper manufacturer Pan African Paper mills Limited is on the verge of collapse due to alleged mismanagement. 

COTU chairman Rajab Mwondi says the paper manufacturing company has over 8billion shillings in debts owed to creditors and operations at the mill have been brought to a halt due to power disconnection.

The paper company in Webuye has had a monopoly in the paper manufacturing sector.

The company believed to be worth more than 1.5 billion shillings is now on the verge of collapse as a result of the many debts owed to creditors.

Cotu chairman and the general secretary of the Kenya union of printing, publishing and paper manufacturers Rajab Mwondi is now calling on the government to intervene and save the industry and the over 30,000 people who depend on the mill for a livelihood.

The government is the largest shareholder in the company with 34% followed by Oriental Paper and Industries of India with 29% and The Biria Group of India with 25%.