Prominent breakfast cereals producer Proctor & Allan, now under receivership over a KCB Group debt of Ksh 3.7 billion, has a complex ownership structure involving 18 wealthy shareholders, many of whom are former CEOs of major corporations.
Initially linked to Ngugi Kiuna, Edward Njoroge, and Zephaniah Mbugua, records from the Business Registration Service (BRS) reveal additional stakeholders, including former Nairobi Governor Evans Kidero, investment banker John Ngumi, and NCBA chairman Isaac Awuondo.
The company’s primary ownership is split between two investment vehicles: Peri Investments, controlling 11.8 percent, and Nerifa Holdings, which holds a dominant 76.8 percent stake, jointly owned by Njoroge and Mbugua.
Proctor & Allan’s financial struggles stem from difficulties in servicing the loan that funded its Limuru plant, leading to a legal battle to block receivership.
The case follows a trend of struggling firms, with Labh Singh Harnam Singh Limited and Mastermind Tobacco also recently placed under administration due to mounting debts.
The giant cereals manufacturer Proctor & Allan (EA) Limited was placed under receivership due to a Ksh 3.7 billion debt owed to KCB Group.
The receivership follows the company’s struggles to repay a loan used to acquire a manufacturing plant in Limuru, Kiambu County, which it had secured in 2015 with the help of KCB Group.
The entity known for its popular cereals, including cornflakes, oats, porridge mixes, and cake mixes, has been battling financial challenges amid increasing competition and a tough economic environment.
Its ownership includes several prominent Kenyan businessmen, including Ngugi Kiuna, a notable businessman with significant interests across various sectors, who is linked to the company, along with Edward Njoroge, the former CEO of KenGen, and Zephania Mbugua, the former chairman of East African Cables.
Nefira Holdings, which controls a majority stake of 76.82%, is listed as the largest shareholder.
The receivership order also reflects the broader economic challenges faced by many firms in Kenya.
Proctor & Allan joins a growing list of companies that have recently been placed under receivership or administration, including LSHS, a historic vehicle body manufacturer, and major cigarette manufacturer Mastermind Tobacco.
