Cereals Company Tied To Kenyan Tycoon Ngugi Kiuna Faces Receivership Over 28.6 Million Debt

Proctor Allan Limited, a leading cereal manufacturer with Kenyan businessman Ngugi Kiuna among its shareholders, has been placed under receivership after failing to repay a 28.6 million loan owed to KCB Group. The move reflects the growing financial strain on Kenyan businesses as economic pressures mount.

The High Court appointed Ponangipalli Venkata Ramana Rao and Swaroop Rao Ponangipalli as receivers, effective Monday, Feb. 24. Their appointment shifts control of the companys assets and operations from its directors to the receivers, who will oversee financial restructuring. Creditors and other claimants have until Mar. 31, 2025, to submit their claims.

Proctor Allan, one of Kenyas oldest food processors, has been in operation since the 1940s, producing cereals such as cornflakes, oats, and porridge mixes. The company took out the Ksh3.7 billion 28.6 million loan from KCB in 2015 to finance the construction of a manufacturing facility in Limuru. However, it has since struggled to keep up with its financial obligations.

Rising competition, high taxes, and broader economic challenges have worsened the companys financial position. Its receivership is the latest in a series of corporate failures in Kenya, following similar struggles at cigarette manufacturer Mastermind Tobacco and automobile body firm LSHS.

Proctor Allans ownership includes prominent figures in Kenyas corporate scene. Major stakeholders include Zephania Mbugua, former chairman of East African Cables Edward Njoroge, former CEO of KenGen and Ngugi Kiuna, a seasoned investor with stakes across multiple industries. The companys largest shareholder, Nefira Holdings, controls 76.82 percent.