Renown billionaire Manu Chandaria is at the brink of being declared bankrupt as he continues to lose various assets due to huge debts.
Chandaria suffered a big blow after the NCBA group placed his manufacturing firm, Kaluworks Limited, under receivership over the non-payment of Ksh 4.3 billion debt.
NCBA has since appointed a receiver-manager to try and turn around the fortunes of Chandaria’s company.
Kaluworks has faced downturns due to the stiff competition it faces from other manufacturing companies that deal in utensils and roofing sheets. The company has in the recent past recorded dwindling sales and profits.
NCBA has tapped receiver-manager Pongangipalli Rao for the Kaluworks job in a development that marks a rare blot in the career of industrial magnate Manu Chandaria, Comcraft chairman.
“Notice is given that the above company (Kaluworks) was placed under administration on May 27, 2021, by the holder of a qualifying floating charge,” Mr Rao said in Friday’s Kenya Gazette notice.
The receivership comes months after several lenders, including I&M Bank, scrambled for auctioneers and debt collectors to auction multimillion-dollar properties, including residential and commercial complexes, which had been used to guarantee loans for Kaluworks after the firm failed to honor its obligation
This is a huge blow for Chandaria who had invested heavily in several industries in the country. The losing of assets continues to expose his vast empire to scrutiny which may bring them down to their knees.