The troubles at Mumias Sugar Company are piling with each passing year. The Company has been placed under receivership by KCB, which has 1.72% of the shares. In a statement, the Bank confirmed that the miller has been placed under receivership to protect its assets and to maintain its operations. The Bank has appointed Ponangipalli Venkata Ramana Rao of Tact Consultancy Services as the Company’s receiver manager.
The move comes after Mumias Sugar defaulted on loans it owes the bank and other creditors, amounting to Kshs 12.5 billion. In a statement released on Tuesday, Tact Consultancy have noted that none of the directors, shareholders, employees or any other person is authorized to transact any business on behalf of the Company without express written consent from the Receiver. The Mumias Sugar Company management has also been directed to submit the statement of Company’s affairs, within 14 days, and also attach among the list of movable and immovable assets, list of trade and other creditors with age analysis, together with addresses and securities held by each creditor, list of all bank accounts together with balance and full particulars among other attachments.
Moreover, the Company’s shares were suspended from trading at the Nairobi Stock Exchange (NSE) by the Capital Markets Authority on Wednesday morning. For many, there is no sign of the miller’s operation coming back to full stature after the blows it has experienced in the recent years.
