This archive report was first published on 6 November 2019.
On September 20, 2019, Mumias Sugar Company was placed in receivership by KCB Group, a move that led to the termination of all employees' contracts. The receiver manager, PVR Rao, issued a termination notice to all employees, which was copied to heads of departments and the workers union.
According to the notice, all employees' contracts stand terminated from the date of receivership, September 20, 2019. Mr. Rao stated that any payment to the affected employees would be dealt with in accordance with the provisions of the law.
Workers, who have gone 31 months without pay, are owed Sh1.8 billion dating back three years. The receiver manager said he will consider engaging workers on a temporary basis at mutually agreeable terms until the company resumes operations.
Mumias Sugar head of legal services, Patrict Mutuli, declined to comment on the notice, stating that he was not authorized to speak on the matter. However, Kenya Union of Sugar Plantation and Allied Workers Mumias branch secretary-general, Vitalis Makokha, termed the notice illegal, citing several meetings they had held earlier with the receiver manager where their employment was guaranteed.
