Mumias Sugar Company chief executive officer Patrick Chebosi has been sent on a compulsory leave, pushing the sugar miller deeper into crisis.
This comes as the troubled miller is anticipated to retrench 900 workers in February this year to cut operational costs.
Mr Chebosi had headed the ailing company for only seven months after taking over its leadership on June 2018 from Nashon Aseka.The circumstances leading to his suspension remain unclear, but it’s likely related to financial (mis)management.
In June 2017, Mr Aseka succeeded Errol Johnson who ran away from the country claiming that his life was in danger.
The former chief security officer at the company, Isaac Sheunda, will act in capacity until a fit candidate is hired for the position.
Confirming the appointment, the company’s board chairman Dr Kennedy Ngumbau said that the board wants to improve service delivery at the company.
“We shall re-organize the management structure of Mumias Company following a recent audit carried out. We want to focus in making the company profitable in a period of six months by increasing its efficiency,” said Dr Ngumbau.
The miller, once a giant cane processor, owes about Ksh2.7 billion to cane farmers and other suppliers.
With over 1500 workers, 900 of them will be sent home at a cost of Ksh400 million in order to control its wage bill that is estimated at Ksh40 million a month.