Struggling sugar miller Mumias placed under receivership ▷ Kenya News

Debt-ridden Mumias Sugar Limited company has been placed under receivership to protect its assets and keep operations running.

Kenya Commercial Bank (KCB) on Tuesday, September 24, confirmed it had appointed Tact Consultancy Services as the sugar miller's receiver manager.

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“The Bank has appointed Mr PVR Rao (Tact Consultancy Services) as the sugar company’s receiver manager,” KCB said in a statement to newsrooms.

Mumias has been struggling with huge debts and massive losses that have seen its total liabilities surpass total assets.

As was earlier reported by TUKO.co.ke, the miller suffered a KSh 15 billion loss in the financial year ending 2018, representing a 122 % loss despite slashing its cost of sales to KSh 3.9 billion from KSh 5.3 billion in 2017.

“The steep rise in loss was driven by a 101% increase in impairment charges to our plant and machinery of KSh 4.9 billion from KSh 2.6 billion charged last year,” said the company's board chairman Kennedy Ngumbau.

According to Ngumbau, Kenya Revenue Authority contributed to the company's financial woes after it slapped the firm with a tax of KSh 5 billion, an increase from KSh 2.7 billion in the same period in 2017.

More to follow.