Nzoia Sugar to lay off staff as cash crunch bites

"With the short time I have been here, I have noticed that the company has excess workers."

In Summary
  • The company Chairman said that in one week's time, he has scheduled staff rationalization noting that it will help in weeding out the ghost workers within the firm’s departments.
  • “The company spent over Sh50 million to sort out workers’ salaries which is against the expectation and plan of the company. Staf
Nzoia Sugar Company board chairman Alfred Khang'ati (right) and the new acting managing director CPA Ezron Kotut addressing the Journalists on May,05,2023.
Nzoia Sugar Company board chairman Alfred Khang'ati (right) and the new acting managing director CPA Ezron Kotut addressing the Journalists on May,05,2023.
Image: TONY WAFULA/ FILE

Nzoia Sugar Company management has hinted at laying off staff for lack of funds to cater for the huge wage bill.

In an Interview with the press on Friday at the Company premises, the firm’s board chairperson, Alfred Khang’ati revealed that the company will lay off redundant staff.

“With the short time I have been here, I have noticed that the company has excess workers giving the company a hard time sorting out their dues,” Khang’ati said.

The company Chairman said that in one week's time, he has scheduled staff rationalization noting that it will help in weeding out the ghost workers within the firm’s departments.

“The company spent over Sh50 million to sort out workers’ salaries which is against the expectation and plan of the company. Staff rationalization will help us know who belongs where,” he said.

In addition, Khang’ati blamed the outgoing managing director Chrispine Omondi for not coming up with a clear number of the company’s staff.

“For the three months I have been here, I have severally requested Omondi to give me the total number of workers at Nzoia but I have never been given,” he said, adding that he receives different figures every time.

Khang’ati also noted that he will contact all agencies that deal with corruption to visit the company and unearth the evils.

“Next week, I’m going to have a meeting with Bungoma County police commander Francis Kooli so that we can see how we deal with these cases,” he said, adding that the company has a police post where corrupt staff have been arrested and released without undergoing scrutiny and prosecution.

“Our own police post within the company premise has  a lot of cases associated with some staff who were in one way or the other caught in corrupt cases, but they were released without prosecution.”

Khang’ati said that there are a large number of casuals in the departments, among them the ICT docket.

“Some dockets like ICT need not casuals.  I’m going to work on it and streamline things to ensure that everybody fits his job as ghost workers sucked,” he said.

Khang’ati applauded the head of state for writing off debts and saying a big no to the privatization of the sugar mill.

The company chairman encouraged farmers to supply their canes at Nzoia Sugar Company saying that they have increased the price of sugarcane per tonne.

On Friday, appointed Certified public accountant (CPA) Ezron Kotut as the new managing director.

Kotut takes over from Omondi who has been in an acting capacity from September 1, 2021, to May 1,  2023.

Kotut is also in the acting capacity.

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