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Capital Markets

NSE suspends Mumias, Deacons indefinitely

Mumias Sugar Company entrance
Mumias Sugar Company entrance. FILE PHOTO | NMG 

Nairobi Securities Exchange (NSE) has extended suspension on trading of Mumias Sugar Company and fashion retailer Deacons East Africa shares, locking in investor wealth indefinitely.

The financially troubled firms were placed under receivership on September 20, 2019 and November 19, 2018 respectively due to default on loans amounting to billions.

The continued suspension may signal a move to delist the stocks if the companies do not take remedial measures.

"The extension of suspension from trading of the company's shares will remain in force until further notice," NSE said on both companies.

"All shareholders, investors and the public are advised to take note of the delisting."

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Mumias was placed under receivership by KCB Bank on September 20, 2019 which it dissolved the board and appointed a consultancy PVR Rao to run the miller. This prompted Capital Markets Authority to suspend Mumias' share in line with the regulations.

Mumias, partly owned by the government — with 20 per cent held by the Treasury — had defaulted loans amounting to Sh12.5 billion at the end of June 2018.

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