The future of Nairobi's popular eat-out Nyama Mama now hangs in the balance after the franchise's financial woes escalated.
The franchise has been put under administration just months after its owners were charged with fraudulently acquiring a Ksh520 million loan.
In a newspaper advert on Wednesday, Harveen Gadhoke, the CEO of corporate advisory firm Adili Associates, announced he had been appointed the administrator effective February 10.
“Following the appointment, all the affairs, business, and property of the company are being managed by the administrator. The directors of the company no longer have any power or authority to deal with these matters,” the advert stated.
“Any party having a claim against the company should submit their claim in writing, together with relevant supporting documentation and a proof of debt form, to the Administrator on or before March 4, 2022, for consideration."
The restaurant chain is now facing fresh troubles taking a toll on its survival in the Kenyan market.
The eatery had enjoyed the country's market share, positive reception and robust growth prompting its owners to open other branches in parts of Nairobi.
But now, with the franchise under administration, it means that the owners have no control over the multi-million shilling business empire.
The parent company Good Earth Group being put on administration signifies the end of the popular restaurant that has played host to the country's top figures and even celebrities.
It opened its doors around 2015 targeting different clients and cultivating a Kenyan traditional foods brand.
In 2021 Nyama Mama directors were charged with obtaining Ksh520 million loan and the Court freed them on bond.
Due to the troubles, the franchise was even forced to slash its workforce by 70 per cent which saw 350 workers laid off.
Its profit margins dropped drastically forcing the restaurant to scout for partners or private investors as the management worked hard to keep the business afloat.
“We have had sleepless nights in the past year thinking about how to keep this business going, what innovation to do on these investments,” one of the directors stated.
She added, "You can never go wrong investing in food and beverage. This is where we hope to get investors looking for good returns like the African diaspora. We are still here. Because we want to make sure that we bring this business back to where it was."
Since the start of the pandemic, many restaurants have been forced to shut down their doors and even put up for auction. This was partly caused by the economic ravages caused by the pandemic as the government put in place restrictions, including the closure of bars and restaurants in 2020.
The iconic outspan hotel was in 2021 put up for auction due to dwindling proceeds and the same fate befell Blackyz Lounge and even a section of Dusit D2 hotel.
However, the government has insisted that it has established mitigation plans to bail out the entire tourism sector from the effects of the pandemic.
