Struggling Cereals Firm Linked To Kenyan Tycoon Ngugi Kiuna Receives 10 Million Buyout Offer

Proctor Allan Limited, a Kenyan cereal manufacturer with businessman Ngugi Kiuna among its shareholders, is looking to avoid being placed under receivership after receiving a 10 million buyout offer from an unnamed buyer.

The troubled company is pinning its hopes on the potential investor, who has reportedly offered Ksh1.2 billion 10 million to revive operations and settle debts owed to KCB Bank Kenya. This lifeline comes after Proctor Allan was placed under receivership for failing to repay a 28.6 million loan. The move underscores the financial pressures squeezing Kenyan businesses.

The High Court appointed Ponangipalli Venkata Ramana Rao and Swaroop Rao Ponangipalli as receivers, effective Feb. 24. Their role is to take over the companys assets and oversee financial restructuring. Creditors and other claimants have until Mar. 31, 2025, to submit their claims. However, last Friday, the company secured temporary orders blocking the KCB-appointed receiver managers from assuming control.

One of Kenyas oldest food processors, Proctor Allan has been producing cereals such as cornflakes, oats, and porridge mixes since the 1940s. In 2015, it borrowed Ksh3.7 billion 28.6 million from KCB to fund the construction of a manufacturing plant in Limuru.

But rising competition, high taxes, and economic challenges have made it difficult to keep up with repayments. The companys financial struggles mirror those of other Kenyan firms, including cigarette manufacturer Mastermind Tobacco and automobile body firm LSHS, which have also faced financial distress.