Tough economic times continued to afflict businesses in Kenya forcing five companies to slide into liquidation.
In separate Gazette notices released on Friday, five companies risk sliding into liquidation four of which have active court cases while one was placed under voluntary liquidation .
The companies include Xplico Insurance, Nest Group Africa, Kenya Motors and Equipment Limited, Ali Harbours Restaurant, and Latchford Land Holdings Limited.
One of the liquidation suits is scheduled to be mentioned on July 22.
Regarding Kenya Motors and Equipment Limited, a liquidator was appointed and directed creditors to file claims by May 27, 2024.
The Liquidator will convene the first general meeting of creditors on May 30, 2024.
For Xplico Insurance, the liquidation petition will be heard on June 11 with creditors and contributors seeking to support or oppose the exercise invited to present their views.
"Any person who intends to appear on the hearing of the said petition must serve or send by post to the above-named firm in writing his intention so to do. The notice must state the name and address of the person, or if a firm, or their advocate, if any, and must be served, or if posted must be sent by post, in sufficient time to reach the above-named not later than noon on the 3rd June, 2024," read the notice in part.
Regarding the Ali Narbour Restaurant, the liquidator held the final meeting on May 30.
Latchford Land Holdings Limited, on the other hand, voluntarily passed a special resolution on April 18, 2024, to liquidate the company.
"All creditors’ of the company are notified to lodge their claims with full particulars that they may have against the company with the under-mentioned liquidator on or before the 28th of June 2024 and if so required by the liquidator shall be required to prove the debt due to them by the company, failure to which the claim shall be excluded from any distribution by the company," the notice indicated.
The insolvency petitions come as business owners increasingly become anxious over the Finance Bill 2024 expected to roll out a new raft of taxes.
In late May, Kenya Association of Manufacturers (KAM) Chief Executive Anthony Mwangi expressed fears that more foreign investors were likely to flee the country should the Finance Bill pass through Parliament as is.
He argued that the bill would pile more strain on an already struggling economy.
"If you look at the export promotion and investment levy cumulatively, what the government has collected is what it used to collect from one company in a month. So you destroy a sector to collect peanuts," Mwangi stated.
"When you come here as an investor you are taken in rounds with some officials asking for some token. These global investors have no appetite for some of these investment destinations that operate like that."
KAM further indicated that the bill will force prices of products as basic as bread to increase. Cooking oil is projected to shoot up by 80 per cent.
