Mumias to retrench 900 workers as CEO exits
SEE ALSO :Mumias Sugar cuts non-core venturesThe company's board chairman Dr Kennedy Ngumbau said Isaac Sheunda, a former chief security officer at the firm will take over the hot seat in acting capacity. “The appointment is aimed at improving service delivery at the miller. There shall be a complete overhaul in the management structure of Mumias Sugar so that they can be able to revive the company back to its crushing capacity,” Dr Ngumbau said. Mumias Sugar company has over 1,500 workers and will shed off the 900 workers at a cost of Sh400 million to tame its wage bill estimated at Sh40 million a month. The miller owes cane farmers at least Sh700milion in cane deliveries, suppliers and lenders about Sh20billion. Mumias sugar is facing a serious challenge with increased competition from the new entrant, Busia Sugar Company which will cannibalize cane in the region shared between the listed miller and private firm Western Sugar.
SEE ALSO :Mumias Sugar eyes cash from scrap metalThe miller has not published its results delaying for almost four months and has even opted to sell off Sh10 million worth of scrap metal and timber from its forest plantation to enable it resume operations.