Mumias to retrench 900 workers as CEO exits
Ailing sugar miller Mumias will fire 900 workers next month and have sent home Chief Executive Officer (CEO) Patrick Chebosi on compulsory leave.
The corner office at the sugar milller has been a revolving door for CEO’s linked to political machinations, bailouts and sugar imports.
Chebosi lasted on the hot seat for only seven months having taken over from over from Nashon Aseka in June 2018. Aseka had in turn succeeded Errol Johnson who fled the country citing threats on his life around June 2017.
SEE ALSO :Mumias to sell non-core assets in recovery plan
The 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 :Uproar over plan to dispose Mumias Sugar assets
The 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.
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