Cash strapped Mumias Sugar Company has sent parking all its employees, just over a month after it went into receivership under Kenya Commercial Bank (KCB).
In a letter dated November 5, 2019, the company said that all employees have been declared redundant since September 20, 2019, when the company was placed under receivership.
“Consequent to the company being placed in receivership, all employees contracts stand terminated from the date of receiveship i.e 20th September, 2019,” read the letter in part.
Mumias Sugar however said the affected employees will be lawfully compensated.
“Any payment to the affected employees shall be dealt with in accordance with the provision of the law,” added the letter in part.
New staff will be hired on temporary basis to keep the company running and priority will be given to the now former staff.
“Accordingly, the Receiver shall engage the services of any employee on a temporary basis on mutually agreeable terms until the time when the operations resume. Priority will however be given to the past employees while recruiting the staff on temporary basis until the time when the company’s operations are revived,” said the cash strapped firm.