KENYA – Mumias Sugar Company will lay off several workers in the ongoing restructuring process.
Managing director Coutts Otolo said the company wanted to rationalise its 1,900 employees to get desired results.
“We have been forced to rationalise as part of intervention measures in the wake of the massive losses,” Mr Otolo said at the weekend soon after the company announced a Sh2.7 billion loss.
Mr Otolo remained optimistic that the biggest sugar company will pick up again.
“High production costs and other factors beyond our control have led to the Sh2.7 billion loss. Importation of 10, 000 tonnes of sugar handed a loss of Sh1 billion,” he said, noting that sugar being smuggled into the county was killing the local industry.
“Effects of cheap sugar imports have impacted negatively on our operations but we are happy that sugar prices are beginning to pick up once again,” he said. The average price of sugar rose to Sh4, 500 per 50kg bag down from Sh3,000, said Mr Otolo.
“This is a good indication since our costs of production remain quite high,” he said. Mr Otolo said the Sh13 billion turnover the company posted could have been higher were it not for problems related to cheap sugar imports