City billionaire Manu Chandaria has lost one of his companies, Kaluworks Limited after it was put under receivership by a local bank over Ksh4.3 billion debt.
According to a report by the Business Daily, the firm, which has been owned by the Chandarias for 92 years, was struggling to stay afloat leading to weak sales over the past years. Further, the company's woes deepened after it faced increased competition from other manufacturers.
Kaluworks Limited, part of the aluminium production industry, is a company that deals with the manufacture of cookware. It was established by Chandaria's father Premchandbhai Chandaria in 1929.
The organisation will now be run by the lending bank - which is predominantly owned by the Kenyatta family.
"Notice is given that the above company (Kaluworks) was placed under administration by the holder of a qualifying floating charge," read part of the notice by the bank.
Reports also show that Kaluworks Limited owes another bank Ksh4.3 billion debt as well as millions of shillings in a commercial paper. The firm, however, defaulted on the payments.
"For Kaluworks, who thought that Manu Chandaria could default on a commercial paper?" a CEO of a local bank posed.
Several lenders noted that links of the company to Chandaria gave them the confidence to lend the amount. The company
The company, which is under Comcraft Group, began operations in the 1920s and was able to diversify into selling aluminium based products.
Chandaria is among the richest businessmen in the country with the 2011 Forbes edition ranking Comcraft Group to be worth Ksh215.6 billion at the time.
The billionaire is also known for his philanthropic nature and charitable works under the Chandaria Foundation.
Among the projects, the foundation focuses on includes education, hospital and medical centers, environmental improvement and children's homes.
