This archive report was first published on 5 November 2019.
Mumias Sugar Company has been placed under receivership by the Kenya Commercial Bank, effective from September 20, 2019.
As a result, the company has terminated all employee contracts, effective from the date of receivership.
However, the company has promised to rehire the employees on a temporary basis under mutually agreeable terms until the company resumes its operations.
Priority will be given to the past employees while recruiting the staff on temporary basis until the company's operations are revived.
Deputy President William Ruto had earlier announced the government's commitment to revive the factory, which suffered a KSh 15 billion loss in the financial year ending 2018.
The company's financial woes have been ongoing, with a 122% loss despite slashing its cost of sales to KSh 3.9 billion from KSh 5.3 billion in 2017.
Kenya Commercial Bank (KCB) appointed PVR Rao (Tact Consultancy Services) as the sugar miller's receiver manager on September 24, 2019.
