Creditors are now afforded the opportunity to lodge claims against Savannah Cement, which is presently under administration due to unpaid debts owed to Absa Bank and KCB Bank amounting to over Kshs 10.0 bn. Mr. Harveen Gadhoke, the appointed administrator representing the two lenders, has communicated that creditors have until August 25, 2023, to submit their claims along with relevant supporting documentation and proof of debt form for consideration.
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The situation arose in May when the High Court lifted an order that had previously prevented the lenders from acting in response to a long-lasting legal dispute. Justice Alfred Mabeya revoked the order granted to Savannah Cement in December, which had halted the appointment of an administrator and the banks’ ability to seize the company’s assets. The suspension was initially provided to Savannah Cement while the court reviewed a previous decision that allowed the lenders to take control of its assets due to the outstanding debt.
Savannah Cement had contested the debt amount, arguing against the sums owed to KCB and Absa, and filed an application in May 2022. However, the application was subsequently dismissed. The company had also raised concerns about the presiding judge, Justice Wilfrida Okwany, who had allowed the banks to enforce their securities. Nevertheless, Justice Mabeya ruled that the request for Justice Okwany’s recusal was no longer relevant in light of subsequent developments.
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As the administration process unfolds, creditors will now have the opportunity to assert their claims, and the situation will be carefully monitored to determine the resolution of the financial issues surrounding Savannah Cement.
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