A construction company that has a loan of up to Sh. 871 million has been placed under receivership after collapsing.
According to a Kenya Gazette notice Spencon Kenya Limited was placed in the hands of PwC executives Kuria Muchiru and Muniu Thoithi effective December 8.
Spencon took a loan of Sh802.5 million from KCB in August 2008, with the debt secured by its directors’ personal guarantees and several properties.
“With the appointment, the powers of the administrators extend to all assets and undertaking of the company,” reads part of the notice.
“By virtue of the administration, the powers of the directors of the company in terms of dealing with the company’s assets have ceased.”
Apart from owing KCB nearly Sh. 1 billion, Spencon had also been sued by several other creditors including lenders and sub-contractors seeking millions of shillings.
By September last year, KCB’s total non-performing loans stood at Sh. 31 billion, rising from Sh. 24.5 billion the year before. Its loan loss provision, however, declined to Sh. 3.4 billion from Sh. 3.8 billion over the same period.