Kabianga Dairy limited under administration amid financial struggles

KENYA – Kabianga Dairy Limited, a dairy company based in Kericho, has officially been placed under administration, signalling financial difficulties that require urgent intervention.

The decision to place Kabianga Dairy Limited under administration was made by I&M Bank Limited, which has selected Swaroop Rao Ponangipalli and P.V. Rao as joint administrators.

Their appointment is in accordance with Kenya’s Insolvency Act, 2015, which permits struggling companies to continue operating while restructuring plans are considered.

Under this framework, the appointed administrators will assess the company’s financial situation, explore potential recovery strategies, and determine the best course of action to protect the interests of creditors, employees, and other stakeholders.

As the administration process unfolds, stakeholders will be keen to see whether Kabianga Dairy Limited can successfully restructure and regain financial stability.

Kenya High Court appoints Mark Gakuru as liquidator for Countryside Dairy

The news comes as the dairy industry in Kenya has been experiencing fluctuations due to rising production costs, market competition, and regulatory changes.

Last year in November, a report by the High Court confirmed the appointment of Mark Gakuru as the liquidator for Countryside Dairy Limited, a significant step in the company’s ongoing insolvency proceedings.

The appointment followed a Gazette Notice issued under the Insolvency Act, 2015, vesting the company’s affairs in Gakuru’s hands as the official receiver.

According to the High Court, the company’s affairs are now under the control of the official receiver, subject to specific conditions outlined in the order. 

The decision follows an ongoing insolvency case, where the company, facing severe financial difficulties, sought court intervention to resolve its obligations. 

The High Court’s ruling comes with clear stipulations, including a requirement that no action be taken against Countryside Dairy Limited without prior approval from either the administrator or the court. 

Additionally, creditor claims must be submitted through the official platform, where claimants are required to provide proof of their debts as per the Insolvency Act’s guidelines.

In 2023, the Nyahururu-based milk processor was placed under government receivership after facing significant financial challenges. 

As part of the liquidation process, the company issued a tender for the disposal of milk ATM machines in December 2023. 

This tender, with the reference number OR/OT/02/2023-2024, invited sealed bids from eligible candidates to purchase the equipment.

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