The financial woes and turmoil facing the ailing and probably dead Mumias Sugar Company are far from over after its shares were suspended from trading at the NSE on Wednesday morning.
The move by the Nairobi Securities Exchange (NSE) comes few hours after the company was placed under receivership by Kenya Commercial Bank (KCB Bank) in what was described as “to protect the assets.”
The suspension and placing the miller under administration means that shareholders are not in a possible to get their cash out of the miller any time soon.
The Capital Markets Authority is also planning to deregister the miller with the concerns that it might never be able to roar back to life.
Mumias Sugar Company owes KCB a total of 480 million shillings which it defaulted in paying. The miller has been ailing for years forcing the government to opt-in bailing it out of the woods but the little money given was too little to help.
Sadly, farmers have been left without pay after delivering their sugarcane to the miller years back with thousands of employees left without jobs and without pay.