Mumias Sugar Company has sent home all its employees, almost a year after a court in Kakamega gave an okay.
In a letter dated 5 November, 2019, the company announced termination of the contracts of all its employees.
"Consequent to the company being placed in receivership, all employees contracts stand terminated from the date of receivership i.e 20th September, 2019,'' reads part of the termination letter as quoted by Standard Media.
The company promised to settle any payments owed by their employees.
"Any payment to the affected employees shall be dealt with in accordance with the provision of the law," read the letter in part as quoted by Standard Media.
However, the company has now stated that it will hire other employees on a contract term.
It revealed that priority will be given to the outgoing staff members. The company has been struggling financially.
"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," the statement read.
This comes barely a month after KCB Group placed the company under administration. The company had defaulted on loans it owed KCB, which amounted to Sh. 12.5 billion.