This archive report was first published on 24 September 2019.
On September 24, 2019, Kenya Commercial Bank (KCB) confirmed the appointment of Tact Consultancy Services as the receiver manager for Mumias Sugar Limited.
The move aims to safeguard the company's assets and ensure its operations continue uninterrupted.
Mumias Sugar Limited has been struggling with significant debts and massive losses, with its total liabilities surpassing its total assets.
As reported earlier, the company suffered a KSh 15 billion loss in the financial year ending 2018, representing a 122% loss despite slashing its cost of sales to KSh 3.9 billion from KSh 5.3 billion in 2017.
The steep rise in loss was attributed to a 101% increase in impairment charges to the company's plant and machinery, amounting to KSh 4.9 billion, up from KSh 2.6 billion charged the previous year.
Kenya Revenue Authority's tax imposition of KSh 5 billion, an increase from KSh 2.7 billion in the same period in 2017, also contributed to the company's financial woes.
According to the company's board chairman, Kennedy Ngumbau, the tax imposition was a significant burden on the company's finances.
