ECP Kenya Ltd, the Nairobi-based affiliate of Washington-based Emerging Capital Partners (ECP) and former owner of Java House, has filed for voluntary liquidation, marking the end of its presence in Kenya’s investment landscape.
- •According to a notice in the Kenya Gazette, the firm petitioned the High Court for voluntary winding up on the 3rd July, with creditors invited to support or oppose the liquidation proceedings.
- •The move comes months after ECP Kenya lost an appeal before the High Court in a tax dispute involving proceeds from its 2017 exit from Java House.
- •The Private Equity firm bought the popular restaurant chain, Java House, in 2012, then later exited in 2017, selling the asset to Dubai-based Abraaj Group.
In February 2022, the Kenya Revenue Authority (KRA) issued a KSh 3.21 billion corporate income tax assessment against ECP Kenya Ltd, linked to its exit from Java House, a transaction estimated at over $100 million.
ECP disputed the assessment, arguing the proceeds were investment income subject to capital gains tax, not trading income liable to corporate tax. However, the Tax Appeals Tribunal (TAT) in October 2023 upheld a reduced tax claim of KSh 773.8 million, siding with KRA.
In a later ruling delivered in December last year, the court dismissed ECP Kenya’s appeal for failure to file submissions and prosecute its case, effectively upholding a 2023 judgment.
