This archive report was first published on 6 November 2019.
Mumias Sugar Employees Locked Out After Mass Sacking ¶
On November 6, 2019, Mumias Sugar employees were barred from entering their offices, a day after the debt-ridden miller fired all its employees on November 5, 2019.
The Kenya Union of Sugar Plantation and Allied Workers Mumias branch secretary, Vitalis Makokha, called on the government to intervene and save the sacked staff.
Speaking to KTN News on November 6, 2019, Makokha stated that all employees who had reported to work were kicked out without any valid reasons.
"All the employees have been locked out of the gate, those who went in the morning were asked to get out until Rao communicates otherwise, so there is a lot of confusion as the employees are scattered around the gate pondering their next move. Our earnest appeal to the government of Kenya is to plead with Rao to engage with the union to organise the way forward," Makokha said.
On November 5, 2019, Mumias Sugar fired all its employees in a notice, stating that any payment to the affected staff shall be dealt with in accordance with the law.
The miller 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.
Kenya Commercial Bank (KCB) had appointed PVR Rao (Tact Consultancy Services) as the sugar miller's receiver manager on September 24, 2019.
