Kenyan cereals company Proctor & Allan has fallen over a multi-billion shilling loan it owes KCB Bank Kenya. The troubled company has been placed under receivership by the High Court after it failed to service the KCB loan that is estimated at Sh3.7 billion.
At the same time, the High Court has appointed Ponangipalli Venkata Ramana Rao and Swaroop Rao Ponangipalli as receivers with effect from February 24, 2025.
“Following the appointment, all the affairs and business of the company are being conducted by the receivers. The powers of the receivers extend to all assets and undertakings of the company. The powers of the directors in terms of dealing with the company’s affairs ceased,” the joint administrators state in their notice.
Incidentally, Ponangipalli Venkata Ramana Rao and Swaroop Rao Ponangipalli are also the joint administrators for bus and trucks body building firm Labh Singh Harnam Singh Limited (LSHS) which was placed under administration by the High Court from February 4, 2025 over a Sh. 1.1 billion loan it owes the KCB Group.
The duo added that all claims against Proctor & Allan will be accepted before March 31, 2025. “Any party having a claim against the company shall submit the claim in writing together with the relevant supporting documentation,” the administrators said.
The troubled company is associated with local businessmen whose net worth is estimated to be over a billion shillings. These businessmen include Ngugi Kiuna, Kenneth Muchai Ikiara, Edward Njoroge, and Zephania Mbugua. Njoroge is the former chief executive officer of KenGen while Mbugua is the former East African Cables chairman.
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The company has been operating from their main factory in Limuru, Kiambu County. According to court filings, KCB Group financed the acquisition of the company’s Limuru factor in 2015. However, the company was unable to make repayments.
The company has been the manufacturers of popular cereals products including cornflakes, oats, cake mixes, unimix, bread crumbs and gravy mix and porridges such as Lishe and Kiddos.
