MID Kent Water is up for sale and the boss of its parent company has quit.

The dramatic turn of events has caused massive uncertainty among hundreds of staff at the supplier's Snodland headquarters as they face up to life under a new owner.

Keith Tozzi, chief executive of the Swan Group and the man behind revolutionary plans to create a single water supplier for Kent and Medway, has left the company.

Swan is to keep subsidiaries Inenco, an energy use consultancy, and Eclipse Scientific, a food testing agency, while selling off Mid Kent Water.

This effectively ends the diversification strategy begun in the 1990s by former Mid Kent Holdings chief executive Geoff Baldwin, who has since retired.

The dramatic move appears to have been triggered by WestLB, the European bank that backed Swan Group's takeover of Mid Kent Water some years ago.

The sale of Mid Kent Water would clear the way for Swan to bid for another but larger water utility company.

In a statement, WestLB said the Swan Group board had decided that Swan should "enter into discussions with potential purchasers for its main subsidiary Mid Kent Water."

It added: "In view of the reduction in his role following a sale, Keith Tozzi, the Group Chief Executive has left the company with immediate effect and will relinquish his position as chairman of Mid Kent Water."

Bob Atwood, group finance director, has become Swan's acting chief executive and chairman of Mid Kent Water.

West LB said that Inenco and Eclipse would "continue to be fully supported by Swan and will remain an important element in the development of the swan group”.

Inenco managing director Nigel Withey and Eclipse managing director Julie Dedman have become Swan board directors.

Robin Saunders, chairman of Swan and managing director of WestLB's Principal Finance Group said: "I am delighted that these changes end a period of uncertainty for staff and customers of Swan Group.

"WestLB remains committed to support both inenco and Eclipse Scientific following a sale of Mid Kent Water, and the proposed sale would remove any regulatory uncertainty surrounding WestLB's intention to make further investments in the UK water industry.

"I would also like to thank Keith Tozzi for his contribution to the Swan Group and wish him well in the future"