What separates administration from receivership

The optimal option for recovery of debts owed by a distressed entity will depend on numerous considerations including the legal rights of the stakeholders to initiate administration, receivership, liquidation, among others. PHOTO | SHUTTERSTOCK

By BEATRICE NYABIRA
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By JUDY MUIGAI
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By CHRISTINE MURANGI
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Summary

• The optimal option for recovery of debts owed by a distressed entity will depend on numerous considerations including the legal rights of the stakeholders to initiate administration, receivership, liquidation, etc, and the expected outcome of the selected insolvency procedure from a financial and reputational perspective.

KCB plans to acquire DRC bank in 2 years

KCB Group CEO Joshua Oigara. PHOTO | SALATON NJAU | NMG

By PATRICK ALUSHULA
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Summary

• Group CEO Joshua Oigara says the lender is not going to “hold pause” on searching for new opportunities and believes DRC is the most likely next destination.
• Kenyan commercial banks are looking beyond their borders for acquisitions, seeking to tap opportunities in East Africa which are driven by rapid economic growth and trade integration.
• KCB entry into DRC will bring competition at the door step of its rival, Equity Group, which in August purchased a 66.5 percent stake in Banque Commerciale Du Congo (BCDC) through a Sh10.3 billion cash transaction.

Helb risks Sh15bn loan defaults on job losses

Loan applicants at the Helb offices in Nairobi. FILE PHOTO | NMG

By LYNET IGADWAH
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Summary

• The pandemic has resulted in layoffs, pay cuts and unpaid leave, making it a struggle for beneficiaries to make repayments on the strength of their payslips.

Nigerian bank reveals extra pay to Moi allies

A customer being served at a Transnational Bank branch on City Hall Way in Nairobi earlier. It has since been taken over by Nigeria’s Access Bank. FILE PHOTO | NMG

By PATRICK ALUSHULA
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Summary

• Access Bank acquired a 99.98 percent stake of Access Bank on July 20 and paid Sh1.21 billion in cash at the time of closing the deal.
• Top owners of the 36-year-old Kenyan bank with 28 branches were companies owned by close associates of the late Moi, including Joshua Kulei, Simeon Nyachae and the former Vice-President George Saitoti.
• Access Bank says the entire deal was supposed to cost Sh1.62 billion (5.63 billion) but it received a discount of 4.24 percent.

Pattni returns in Sh10bn asset fight with Kanyotus

Businessman Kamlesh Pattni. FILE PHOTO | NMG

By SAM KIPLAGAT
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Summary

• Marriot Africa International Ltd says it bought the prime property from Trendsetters Investments Ltd, who purchased it from Kangaita Coffee Estate Ltd – a firm associated with the Moi-era spy chief – for Sh700 million in 2011.
• Filings tabled in court on Monday revealed that Mr Pattni is the face behind Marriot Africa International and Trendsetters Investments.
• Pattni and the late spymaster were partners in a number of businesses among them Goldenberg International.

Brookside wins Sh12m in row with dairy group

Milk processing at Brookside Dairy factory in Ruiru. PHOTO | JEff angote

By SAM KIPLAGAT
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Summary

• Brookside Dairy sued the farmers in 2011 seeking damages after breaching a milk supply agreement entered in 2008. The farmers had agreed to be delivering between 10,000 and 18,000 kilos daily after Brookside installed a cooling.
• The farmers, however terminated the agreement on July 16, 2011 accusing Brookside of offering low prices for milk supplied.

KCB plans to acquire DRC bank in 2 years

KCB Group CEO Joshua Oigara. PHOTO | SALATON NJAU | NMG

By PATRICK ALUSHULA
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Summary

• Group CEO Joshua Oigara says the lender is not going to “hold pause” on searching for new opportunities and believes DRC is the most likely next destination.
• Kenyan commercial banks are looking beyond their borders for acquisitions, seeking to tap opportunities in East Africa which are driven by rapid economic growth and trade integration.
• KCB entry into DRC will bring competition at the door step of its rival, Equity Group, which in August purchased a 66.5 percent stake in Banque Commerciale Du Congo (BCDC) through a Sh10.3 billion cash transaction.