This archive report was first published on 17 October 2019.
On October 17, 2019, the High Court issued an order blocking the sale of Mumias Sugar Company's assets after the company's takeover by Kenya Commercial Bank.
The court's decision came after a meeting between creditors and the Kakamega County government agreed on plans to revive the company.
During the meeting, chaired by Dr. John Khaminwa, it was resolved to appoint an administrator who would be answerable to all parties involved, not just one creditor.
Mumias Sugar Company was placed under receivership three weeks prior to the court's decision after defaulting on loans amounting to Sh545 million owed to KCB.
As of the court's decision, about 80 creditors had joined the case, including Statec, an Austrian Packaging company, and Lesphine Investments Ltd, a sugar distributor who allegedly paid Sh26 million in advance for sugar supplies but was never supplied.
Lawyer Jackline Kimeto is demanding her dues for representing the company since 2015, while 43 other creditors, sued as a group, are accusing the company of failing to pay them a total of Sh57.5 million.
The company's loans stood at Sh12.5 billion at the end of June 2018, with debts owed to Ecobank Kenya (Sh2 billion), Proparco (Sh1.9 billion), and Commercial Bank of Africa (Sh401 million).
