Muhoroni Sugar Company Limited posted a notice to its employees sending them on a 6- week paid leave effective 25 May, 2018.
The factory has shut down after running out of crop and struggling to pay taxes and debts for months now.
The company has been tax evading by failing to remit its taxes and that of its employees to the revenue authorities. It had been put under receivership but finally decided to shut down as they sort their accounts.
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The company says that the management shall be engaging in debenture holder to raise working capital to sustain the business on its start- up.
Workers who turned up to work yesterday claim that they were not expecting this closure and that the company still owes them three months’ salary arrears. Sugar cane transporters also claim that the company owes them more than Sh70 million.
Also read: EXCLUSIVE: Mumias Sugar Company CEO and Commercial Director SACKED
In a letter sent to them by KRA, the company owes a sum of Ksh861, 704,932: Sh212,685,482 for the income tax account, Sh387,305,281 for the main collection account, and Sh266,714,169 for the Sugar Development Levy account.
Creditors had been asked to pay all the money they owe the company to KRA directly.
If they fail to pay the money to KRA, they will personally be held liable for the amount specified in the notice.
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