Mumias Sugar Company chief executive Peter Kebati has been suspended to pave the way for investigations into claims of dumping of cheap imports. PHOTO/FILE NATION
In Summary
The company’s board of directors sent Mr Kebati alongside commercial director Paul Murgor on a two-month leave yesterday to investigate their conduct.
Board member Coutts Otolo will take over as acting chief executive while marketing and communication director Pamela Lutta will be interim commercial director.
Outraged MPs recommended the sacking of the entire management of Mumias after they found more than 10,000 bags of imported sugar at their depot.
Committee vice-chairman Kareke Mbiuki accused the company of giving preference to imported sugar and neglecting its own.
By Ramenya Gibendi
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Mumias Sugar Company chief executive Peter Kebati has been suspended to pave the way for investigations into claims of dumping of cheap imports.
The company’s board of directors sent Mr Kebati alongside commercial director Paul Murgor on a two-month leave yesterday to investigate their conduct.
Board chairman Dan Ameyo told the Nation in an interview that the decision was taken out of growing concerns over the miller’s sugar sales and distribution.
“The board agreed that the two officials were more directly involved in sugar sales and distribution so they should step aside,” said Mr Ameyo.
The chairman said this was to streamline the company’s management and restore its reputation.
FINAL STRETCH
Board member Coutts Otolo will take over as acting chief executive while marketing and communication director Pamela Lutta will be interim commercial director.
Mr Kebati is on the final stretch of three-year contract and denied involvement in the vice that has been blamed for the poor performance of the sugar industry but said he was open to the probe.
Last week, members of the Parliamentary Committee on Agriculture made an impromptu visit to a depot belonging to Mumias in Mombasa and found more than seven tonnes of sugar.
The outraged MPs recommended the sacking of the entire management of Mumias after they found more than 10,000 bags of imported sugar at the depot.
Committee vice-chairman Kareke Mbiuki accused the company of giving preference to imported sugar and neglecting its own.
“We began our investigations a few days ago in Mombasa following numerous complaints from sugar cane farmers and even Mumias Sugar Company itself that the local market is flooded with cheap imported sugar,” said Mr Mbiuki during the visit.
But yesterday, Mr Kebati said the company had not imported any more sugar than its licence allowed for the period.
“We did not import any more sugar than we were allowed by the Kenya Sugar Board. It is only that we have not released the sugar to the market fast enough. That is why we have some stock which is almost finished,” Mr Kebati told Nation.
Mr Ameyo said the board believed the company’s management should be reshuffled.
Ironically, the miller has been making losses since 2012 with the management blaming the dismal performance on cheap imports that have flooded the market and scarcity of sugar cane thanks largely to poaching.
In the six months to December 2013, it reported a loss of Sh73.4 million, an improvement from the Sh1.67 billion loss it had in the full year to June 2013.
FACT BOX
Chief executive and firm’s story
Mr Peter Kebati took over form Dr Evans Kidero in 2011.
Previously served as the company’s chief finance officer for nine years.
He has overseen the millers diversification from power generation, water bottling to ethanol distillation.
Mumias is the only miller listed on the Nairobi Securities Exchange and controls more than 50 per cent of the country’s sugar industry.
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