The listed miller has a workforce of about 1,700 employees.
Mumias sacked its chief executive officer Peter Kebati last month, after finding him culpable for illegal sugar imports that cost the listed miller Sh1.1 billion.
Mumias hopes layoffs will help streamline management and restore the firm’s reputation.
Mumias Sugar is set to lay off up to 300 employees in a cost-cutting effort targeted at turning around the company’s performance.
The listed miller has a workforce of about 1,700 employees.
Acting chief executive officer, Coutts Otolo, said in a phone interview that details of the impending layoffs will be made public in the next three months.
“The number of those who will be affected by the retrenchment ranges from 200 to 300 people. Details about the whole exercise will be made public in the next three months,” said Mr Otolo.
The Nairobi Securities Exchange-listed sugar miller’s chairman Dan Ameyo said Mumias “will engage the affected employees and have a binding agreement.”
He said the expected expenditure on the layoffs including the terminal benefit payments have not been quantified.
Mumias closed shop temporarily last month for lack of sugarcane after transporters contracted to deliver cane downed their tools. The transporters argued that the miller was plotting to kick them out of business by contracting more transporters.
The transporters had also felt aggrieved following the company’s decision to place adverts in local dailies that invited new players on board and indicated a possible review of engagement terms.
Mumias also sacked its chief executive officer Peter Kebati last month, after finding him culpable for illegal sugar imports that cost the listed miller Sh1.1 billion. Mr Kebati had earlier been suspended alongside commercial director Paul Murgor. He has consistently denied his involvement.
Sources within Mumias Sugar told Business Daily that Mr Murgor had been pardoned after the audit report from KPMG that investigated the illegal imports failed to implicate him.
The report also blamed senior executives of the company for discreetly importing sugar and repacking it as a product of Mumias Sugar for sale.
Mr Ameyo had earlier said the layoffs would help streamline management and restore the firm’s reputation.
Mumias’ sales plunged by nearly a quarter to Sh11.9 billion in 2013 compared to Sh15.5 billion a year earlier in what was linked to the cheap sugar imports.
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