![The Mumias Sugar Company Limited was on Tuesday, September 24, 2019, placed under receivership by KCB. [PHOTO | FILE]](https://k24.digital/wp-content/uploads/2019/09/MUMIAS.jpg)
By Mercy Milanoi
Mumias Sugar Company Limited has been placed under receivership by the Kenya Commercial Bank (KCB).
In a Tuesday statement to newsrooms, KCB said the move is expected to protect the company’s assets.
Mumias Sugar Company owes KCB loans dating back to 1972, when it first secured a Ksh10 million loan and took more between 1972 and 2014, amounting to more than Ksh3 billion in total.
KCB has now appointed Ramana Rao of Tact Consultancy Services as the receiver.
Rao will transact business on behalf of the sugar company. This means that none of the members of the board of directors, shareholders, employees or any other person will be allowed to transact business on behalf of the financially distressed firm.
