This archive report was first published on 2 September 2019.
As of August 30, 2019, Mumias Sugar Company employees were informed by acting Head of Human Resource John Shiundu that the Kenya Revenue Authority had issued an Agency Notice to all their bankers, restricting transactions until Sh10 billion in taxes outstanding since 2012 were settled in full.
The move has crippled ethanol production, which the company relied on to generate revenue and pay workers' salary advances.
According to Mr Shiundu, the management of the miller was expected to meet with the KRA to resolve the issue.
"It is unfortunate that this is happening when we had planned to pay our employees salary advances. The management is focused on resolving the issue in the shortest time possible and is committed to paying staff advances as promised," said Mr Shiundu.
Kenya Power had previously disconnected electricity to the firm over an outstanding bill amounting to Sh1.2 billion.
Kakamega Governor Wycliffe Oparanya is expected to unveil a report prepared by a taskforce he appointed to come up with recommendations on the revival of the debt-ridden firm.
