Mumias Sugar Company Sacks All Employees Following the Receivership by KCB

Just a month after the Mumias sugar company was placed under receivership by the Kenya Commercial Bank; all the employees working at the company have been sacked.

The company was placed under receivership by KCB owing to the numerous debts which the it owed the bank dating back to 1972. The company had borrowed Ksh10 million as loan from KCB and it took more between 1972 and 2014 which amounted to more than Ksh3 billion all together.

“Consequent to the company being placed in receivership, all employees’ contracts stand terminated from the date of receivership i.e. 20th September, 2019.” This, the company said in a letter dated November 5, 2019. The Mumias Sugar Company however said that all affected employees would be lawfully compensated.

“Any payment to the affected employees shall be dealt with in accordance with the provision of the law,” the letter read in part. New staff will be hired so as to keep the company operational and most of the priority will be given to the now former employees who have just been fired.

“Accordingly, the Receiver shall engage the services of any employee on a temporary basis on mutually agreeable terms until the time when the operations resume. Priority will however be given to the past employees while recruiting the staff on temporary basis until the time when the company’s operations are revived,” ended the letter.