Mumias Sugar Company will begin the search for a new chairperson after Dan Ameyo stepped down from the state-owned firm.
Mr Ameyo, who was appointed the chairman of the sugar miller in early 2014, chose not to run for the position of director following the lapse of his tenure.
This is despite being eligible for re-election during the company's Annual General Meeting on Friday last week.
Mr Ameyo's retirement comes shortly after the firm appointed Errol Johnston as the chief executive officer.
In a statement yesterday, the company said Ameyo was among three other directors who chose to resign from the Mumias Sugar board.
"Three directors, namely Mr Dan Ameyo, Mrs Elizabeth Kyengo and Mr John Barorot retired by rotation, though being eligible did not offer themselves for election as directors of the company," said the firm.
During the AGM, the shareholders elected three new directors to replace the retired directors. Mumias is currently implementing a turnaround strategy after it sunk into losses.
Besides hiring a new chief executive, the firm has recently also brought in new line managers. It recently received Sh1 billion from the Government that is expected to drive the turnaround.
The firm reported a loss of Sh4.7 billion for the year to June 30, which is comparable to Sh4.6 billion posted in the 2014/15 financial year. Revenues grew to Sh6.28 billion, up from Sh5.53 billion the previous year, but the cost of sales ballooned to Sh8.04 billion from Sh7.19 billion.
The miller attributed the continued poor performance to shortage of cane from farmers, who are diversifying from cane production to other crops due to low returns.
The company also discontinued production of Mumias Sprinkles, its brand of bottled water, saying it was not profitable.
"During the year, water product was discontinued because the water business was no longer deemed viable. The company did not export any power to the national grid due to ongoing commercial renegotiations with KPLC," said the firm when it announced the full-year results in October.
It further said in addition to financial support to the bailout money by the Government, it is negotiating a debt restructuring with its lenders, among other measures that it said would stabilise and revitalise the company .
The miller expects the rise in sugar prices locally as well as the extension of the Comesa safeguards to February 2019 for Kenyan sugar industry to help it get back to profitability.
