Companies

Mumias to retrench more even as board pay doubles

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Review board papers show the range of tricks that State entities use to block certain bidders from lucrative contracts. PHOTO | BD GRAPHIC

Mumias Sugar #ticker:MSC is set for another round of staff retrenchment this year, even as its board pay more than doubled to Sh28.4 million in 2017.

The Nairobi Securities Exchange-listed firm paid its directors Sh12.4 million in the year ended June 2016, according to its latest annual report which reveals the sharp rise in board emoluments.

The figures exclude compensation to its CEO Nashon Aseka whose pay was not disclosed.

While Mumias gave its directors a major pay increase, it is looking to cut costs by laying off part of its employees.

“The company is committed to implementing an optimal staff restructuring programme in order to derive tangible savings on costs to realise higher productivity from a leaner and more efficient workforce,” the company says in its latest report.

Mumias says its staff count dropped by 200 in the financial year to June 2017, partly helped by natural attrition.

Only a few of the company’s eight directors had served for two full years ended June 2017, with others having resigned, retired or joined midway.

Fees and allowances paid to most of the board members, however, went up significantly leading to the higher total pay.

Nancy Kaminchia’s emoluments, for instance, jumped 133.7 per cent to Sh2.1 million in the review period from Sh898,571 the year before while Joanne Tabuke’s earnings rose by two-thirds to Sh2.5 million from Sh1.5 million.

Kennedy Ngumbau, the chairman, was paid a total of Sh5.7 million or 25 times higher compared to Sh228,572 the previous year when he had not ascended to the role of chairman.

Mumias’ disclosures show its directors are paid some of the highest fees among state-owned firms.

The chairman is paid a fee of Sh600,000 yearly and a monthly allowance of Sh500,000.

He is also paid a sitting allowance of Sh78,571 for each meeting and claims mileage at a rate of Sh92 per kilometre.

Other directors earn a fee of Sh500,000 per year, an allowance of Sh57,143 per sitting and claim mileage at a rate of Sh92 per kilometre.

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