September 24, 2019 / 3:59 PM / 2 months ago

UPDATE 1-Kenya's Mumias Sugar placed under receivership - KCB Group

(Adds details, background)

NAIROBI, Sept 24 (Reuters) - Kenya’s loss-making Mumias Sugar Company has been placed under receivership to protect its assets and maintain its operations, local lender KCB Group said on Tuesday.

“The Bank has appointed Mr. PVR Rao (Tact Consultancy Services) as the sugar company’s receiver manager,” KCB said in a statement, giving no more details.

Mumias, which used to be the East African nation’s leading producer at more than 250,000 tonnes a year, has been beset by poor management and mounting losses in recent years.

In the full year to June 2018 it posted a loss before tax of 10.11 billion shillings ($97.49 million), compared with a loss of 9.53 billion shillings in the same period a year before.

The company’s board last year suspended its then chief executive officer for what it said were “doubtful transactions” that appear to have been entered without following proper procedures.

$1 = 103.7000 Kenyan shillings Reporting by Duncan Miriri; Writing by George Obulutsa; Editing by John Ndiso and Ed Osmond

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