Home Afrika, a publicly listed real estate developer, has confirmed that its main subsidiary, Mitini Scapes Development Limited, has been placed under administration due to prolonged financial challenges.
- This comes as the parent company battles to stabilize its operations after years of mounting losses.
- Mitini Scapes, which is part of the expansive Migaa Golf Estate project in Kiambu County, has also been under significant financial strain.
- Kamal Anantroy Bhatt and Dhir Kamal Bhatt of Anant Bhatt LLP were appointed as joint administrators according to a gazette notice dated July 23, 2024.
In a press release, Peter Mungai, Chairman of Home Afrika, clarified that the administration only applies to the subsidiary, Mitini Scapes, and not the entire Home Afrika Group.
According to the notice, the directors of the subsidiary have lost their powers to manage or transact with the company’s assets, which now fall under the control of the administrators.
Home Afrika has been battling financial woes for several years, marked by efforts to reduce losses. The company reported a 64.7% reduction in losses, from Ksh65 million in 2022 to Ksh27.8 million by the end of 2023. It has also been struggling to offset a substantial debt, including a Ksh79 million loan from I&M Bank. Efforts by the firm to dispose of assets, including housing units have so far been unsuccessful.
ALSO READ; High Executive Turnover Signals Trouble for Home Afrika
