An ex-employee of iProcure Limited has withdrawn a lawsuit against the Kenyan agricultural supply chain startup—currently under administration due to financial difficulties.
- •Bernard Kamau filed the suit in March last year, alleging he had been unfairly terminated and that iProcure had breached his work contract.
- •However, the following month in April, iProcure entered administration under Kenya’s Insolvency Act, triggering a freeze on claims against the company.
- •In January 2025, Kamau sought the Employment and Labour Relations Court’s permission to proceed with the case and to include Makenzi Muthusi of KPMG Advisory Services Ltd—the appointed administrator—as an interested party.
However, Muthusi opposed the request by asserting that only the High Court handling iProcure’s insolvency could grant permission. Judge Radido Stephen ruled against the argument and averred that the Employment and Labour Relations Court has the authority to grant such permissions, noting that requiring claimants to seek approval from the High Court could hinder access to justice.
“This Court has the status of the High Court when exercising its jurisdiction and it would be an impediment to the right to access justice and expeditious determination of disputes without delay to expect parties before it to move the High Court to secure leave to continue legal proceedings against a company under administration,” the ruling said.
Despite this ruling, Kamau filed a notice on the 17th March seeking a withdrawal of the motion he had filed last year.
The administrator had issued Expressions of Interest (EOI) in July last year for two failed startups under his umbrella—including iProcure. This was a formal invitation to companies who wished to capitalize on the startups’ assets, announcing that iProcure’s assets included a one-time customer base of 5,000 agri-product retailers, a number of motor vehicles, and a ERP Agri-tech point of sale.
The startup raised more than US$17 million in five funding rounds but due to cash flow constraints and a flawed business model, it could not survive the prevailing drought of VC funding that began in 2023.
