NCBA Group has placed Kaluworks Limited under receivership, with effect from 27th May 2021, over non-payment of KSh4.3 billion debt.
The bank has appointed Pongangipalli Rao as the receiver manager, seeking to either turn around the firm or protect its assets.
The receivership comes only months after several lenders, like I&M Bank, scrambled for auctioneers and debt collectors to auction multimillion-dollar properties, which included residential and commercial complexes that had been used to guarantee loans for Kaluworks after the firm failed to honour its obligation.
Kaluworks, one of Kenya’s largest manufacturers of aluminium utensils and roofing sheets, has been struggling financially over the last few years because of weak sales and increased competition from other cookware manufacturers.
A manufacturing firm that is part of billionaire Manu Chandaria’s Comcraft Group, the company started operations as predominantly a cookware manufacturer. In 1988, it diversified into aluminium rolled products by setting up a state-of-the-art aluminium rolling plant in Mariakani near Mombasa.