The Capital Markets Authority has warned the governor of Kakamega County Mr. Wycliffe Oparanya against interfering in the operations of the listed Sugar manufacturer Mumias Sugar Company. The governor took matters into his own hands after the board of Mumias placed on lease non-core assets of the company.
Mumias’ losses have been growing since 2013 when it booked its first major loss of KSh1.66 billion. In 2018, the firm’s net losses more than doubled to reach KSh15 billion.
The national government has made several attempts to revive the company by pumping in KSh3.2 billion but to no success. In May, Governor Oparanya formed a 12-member committee to manage Mumias Sugar Company assets and help revive the firm. The committee consists of several county government officials, the area police commander, Kakamega’s deputy county commissioner, and two representatives from Mumias Sugar Company. The management of Mumias rejected the move by Governor Oparanya.
Now, CMA has written to the Kakamega governor cautioning him against taking over operations at the troubled sugar miller. The Capital Markets regulator said that due process must be followed in changing the management team of a listed company.
