Mumias Sugar bosses face dismissal
29 April 2014, 10:18
Nairobi - Kakamega County leaders have urged the board of directors of Mumias Sugar to sack suspended top officials of the company.
The leaders accused the suspended executives of making decisions unilaterally while ignoring the farmers input.
Kakamega County Senator, Bonny Khalwale, led the calls for the dismissal arguing that the sugar company had not made profit in the recent past.
Among those suspended is the company’s Managing Director and Commercial Director who were suspended by the company’s board on claims of mismanagement.
The two top officials were last month told to step aside as investigations were conducted.
The company is yet to emerge from its losing streak as it announced a KES 73.4 million loss in its half-year ended December 2013 even though the results marked a 93 percent improvement from the miller’s 2012 results.
Due to the losses, the company had announced plans for diversification of its product portfolio as an attempt towards reducing over reliance on sugar.
It announced that the move saw its revenue grow by 31,5 percent to KES 7.13 billion.
In its financial statement, Mumias stated that ethanol sales increased to KES 488 million in the first half from KES 50 million in the same period in the previous year while the bottled water business grew by 40 percent to KES 14 million.
It could not be ascertained how the board would react to the politicians' calls.
- CAJ News
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