Mumias Sugar to wind up staff retirement fund
Troubled Mumias Sugar Company is set to wind up its staff retirement fund by paying out all outstanding claims to current and former employees.
The trustees of the staff retirement benefits scheme have resolved and received approval from the Retirement Benefits Authority (RBA) for the fund’s voluntary liquidation.
At the same time, the trustees have appointed VC Karani & Associates as the liquidator of the scheme.
Members of the scheme are required to raise claims and supporting documentation to the liquidator within the next one month.
“The liquidator’s authorized representative will be available at Mumias Sugar Company Limited premises in Mumias Town from June 14 to June 18 to confirm and receive claims as well as provide clarification on the winding up process to scheme members and interested parties,” VC Karani & Associates said in a notice issued on Wednesday.
Mumias Sugar receiver manager P. V. Ramana Rao could not immediately disclose the status of the staff provident fund to Citizen Digital.
The manufacturer’s latest available annual report covering the year to June 30 2017 however shows the scheme had fair value plan assets of Ksh.1.9 billion including Ksh.22 .1 million in employee contributions.
The bulk of assets at Ksh.893.8 million are invested in government securities with the balance being spread out to other classes including equity instruments, property and corporate bonds.
The wind-up of the staff scheme comes as the company struggles to stay afloat with its biggest creditor KCB Group having taken over the operations of the firm in September 2019.
Mumias Sugar is yet to resume full operations and currently relies on ethanol production as its central revenue scheme.
The company owns in excess of Ksh.11.6 billion to its creditors who include the National Treasury, the Kenya Sugar Board and NCBA.