Mumias Sugar Company on Tuesday, November 5, laid off all its employees following the decision to put it under receivership on September 20.
The company in a press release stated that payment to the affected employees would be dealt with in accordance with the provisions of the law.
“Accordingly, the receiver shall engage the services of any employee on a temporary basis on mutually agreeable terms until the terms when the operations resume,” an excerpt of the press release read.
Further, the company stated that it would give priority to the terminated employees when recruiting the staff on a temporary basis until when its operations are revived.
Highly placed sources told Kenyans.co.ke that some of the employees had not received their salaries for a period of two years.
Recently, a number of companies have been laying off its staff, quoting difficult economic times.
On October 30, 160 Mediamax Network Limited employees received termination letters, a month after the Kijabe Street-based media company gave notice of mass firings.
The media house laid off its highly salaried, all editors and senior news reporters in the exercise.
On October 2, betting firm Sportspesa sent home its 400 employees in after it lost a battle with the government over the renewal of its license.
The decision to fire the employees came days after the firm announced the termination of its operations in Kenya.