This archive report was first published on 19 December 2019.
The Nairobi Securities Exchange (NSE) has extended the suspension of Mumias Sugar Company's shares, citing the company's placement under receivership on September 20, 2019.
According to a notice issued by the NSE, the suspension was extended for a further three months, effective from December 27, 2019. This means that the earliest Mumias Sugar's shares could trade on the NSE, if the suspension is lifted, would be in April 2020.
The suspension was initially triggered by KCB Group's takeover of the company's operations in September 2019, following Mumias Sugar's default on Sh12.5 billion loans owed to the lender and other creditors. KCB is claiming Sh480.1 million.
Receiver-manager Ponangipalli Venkata Ramana Rao was appointed by the lender, and the trading freeze has blocked retail investors, who hold a 64.7 per cent stake in the company, from accessing their shares.
Efforts are underway to revive the company, with meetings being held by creditors and the Kakamega county government to agree on plans for Mumias Sugar's revival.
