New chief executive sought for Mumias Sugar Company
Kenya’s Mumias Sugar is on the hunt for a new chief executive as the incumbent, Errol Johnston‘s two-year renewable term comes to an end July 31, 2017.
The cash-strapped company currently shut down for maintenance, has already advertised the position.
Errol took over as chief executive in 2015, with a promise to win back the confidence of sugarcane farmers by reviving the company through prompt payment of their dues. He served the company in the same capacity between 1998 and 2001. Johnson, however, failed to fulfill his promise as he leaves behind a Sh 900 million debt owed to farmers for their delivered cane.
The miller has in the past two years received Sh3.1 billion from the treasury as part of the government’s efforts to steer it back to profitability, but the efforts have hit a snag as operations at the factory are constantly disrupted by lack of cane and old machines.
According to the chairman, board of directors, Kennedy Ngumbau Mulwa, Johnston, currently on leave, has voluntarily opted for a non-extension of his service as the Chief Executive Officer at Mumias Sugar Company, and the Board has accepted this position.
Mulwa said in a press statement that Errol has accepted to be available thereafter to serve Mumias Sugar Company Limited in other capacities from time to time.
Said Mulwa in the statement, “the company will make use of his expansive experience and expertise in the sugar industry worldwide, as we continue with the turnaround of the company’’.
He said the board had embarked on the process of seeking a replacement in good time to allow for a smooth transition since Johnston, who is currently on his normal annual leave will continue leading the company until the end of his contract.