Mastermind Tobacco has terminated the contracts of approximately 1,000 employees after being placed under administration due to undisclosed debt, reports Pulse.
The company, owned by the late Wilfred Murungi’s estate, ceased cigarette production six months ago
Mastermind Tobacco, which imported over half of its raw materials from Uganda and the Democratic Republic of the Congo into Kenya, has been involved in legal battles with employees and local tax authorities.
In 2019, Mastermind and the Kenya Revenue Authority (KRA) agreed to sell the company’s prime assets to settle a KES2.9 billion ($18.83 billion) tax arrear. Earlier this year, the company lost a KES517 million lawsuit against the KRA, with the High Court denying it the opportunity to introduce new evidence.