This archive report was first published on 23 December 2019.
EDITORIAL: Resolve Mumias Sugar Company's Woes ¶
December 23, 2019, 22:00
The State-owned Mumias Sugar Company's efforts to revive itself from collapse have failed, leading KCB Group to put it into administration over a Sh545 million debt.
As of June 2018, the miller owed KCB Sh12.5 billion in defaulted loans and Sh2.4 billion to its employees in salary arrears. The company's latest report paints a grim future, with the news that KCB has offered each of the 743 workers it laid off Sh20,000 as terminal dues.
While creditors have every reason to recover their money, KCB should try to return Mumias on its feet to secure the future of thousands of farmers, employees, and businesses that depended on the miller for their livelihood.
The government, which owns 20 percent of the miller, should also hold past managers accountable for their role in the company's downfall and make them pay for their actions.
