List Of Kenyan Businesses That Went Under Receivership In 2023

• President William Ruto's administration instituted new taxation measures in the Finance Act 2023 that have seen many businesses run into operational challenges
• A number of businesses shut down, while others were placed under insolvency, citing increased taxation, high operation costs and reduced sales
• Kenyan logistics startup Sendy fell under receivership in September 2023 due to financial difficulties
• Mastermind Tobacco is the latest company to fall under receivership in December 2023 due to undisclosed debt

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Several businesses operating in Kenya have had a tough economic experience in the year ending December 2023.

The majority were forced to shut down, while others faced huge debts placed under receivership.

A report by the Kenya Federation of Employers (FKE) cited increased costs of doing business, high taxation, and reduced demand, pushing companies to their knees.

This followed new tax measures instituted by President William Ruto's administration in the Finance Act 2023.

According to the Office of the Receiver, about 98 insolvencies were filed between January and October 2023, Nation reported.

Which companies were listed for receivership in 2023?

1. Mastermind Tobacco Ltd

Mastermind Tobacco Limited is the latest company to be placed under receivership in December 2023.

This followed an undisclosed debt, placing it under the administration of I&M Bank.

The company laid off about 1,000 workers after running into liquidity challenges following a lost tax case against the Kenya Revenue Authority (KRA).

2. Sendy

Sendy is a Kenyan logistics startup firm building fulfilment infrastructure for e-commerce and consumer brands.

The company ran into financial struggles, forcing it into receivership in September 2023.

According to Business Daily, the High Court appointed Peter Kahi of PKF Consulting to run the company or liquidate its assets if the rescue efforts fail.

3. TransCentury

In June 2023, the court placed TransCentury Limited under the joint administration of Muniu Thoithi and George Were of PricewaterhouseCoopers and Equity Bank.

This followed the company's failure to repay the lender over KSh 4.8 billion.

TransCentury said in a notice that it has reached an amicable repayment agreement with Equity Bank.

4. East Africa Cables

East Africa Cables Limited also fell under the receivership of Equity Bank.

The lender appointed Thoithi and Weru as joint administrators of East Africa Cables Ltd.

However, the company obtained a temporary court injunction suspending the receivership.

5. Desire Flora Kenya Limited

Desire Flora Kenya Limited fell under the administration of I&M Bank in October 2023.

The lender also appointed Madhav Sudhir Bhandari as a joint administrator to help the flower farm out of financial difficulties, Business Daily reported.

The Kajiado-based farm is seated on a 16-acre plot of land that produces 12 varieties of rose flowers under greenhouses.

Kenyan companies issuing profit warnings in 2023

Apart from running into financial troubles, most companies also issued profit warnings in 2023.

More than 12 companies in Kenya issued profit warnings in the past year, up to December 2023.

The Nairobi Securities Exchange (NSE) listed companies cited a tough business environment and reduced purchasing power.

Stanbic Bank Kenya's Purchasing Managers Index (PMI) for November 2023 showed that most firms experienced reduced operations and output levels, leading to job cuts.

Among the firms is Unga Group, which projected a 25% drop in profit, citing a significant drop in its sales.

Which Kenyan firms closed operations in 2023?

Other firms, like Kenya's banknote printer De La Rue, announced the closure of business due to the low market demand.

Builders retail store in Karen Nairobi announced its exit from the Kenyan market, bowing to poor economic pressure.

Africa Oil quit the Kenyan market after settling tax arrears valued at over KSh 2 billion.