The High Court in Nairobi has issued restraining orders against Kenya Commercial Bank (KCB) from appointing receivers to manage Proctor & Allan Limited, providing temporary relief to the embattled cereals manufacturer.
Lady Justice Njoki Mwangi ruled that Swaroop Rao Ponangipalli and Ponangipalli Venkata Ramana Rao will remain as receiver managers to safeguard the company’s assets.
KCB had appointed the two as receivers on February 24, 2025, following a dispute over a Ksh 3.7 billion loan. However, Proctor & Allan moved to court on February 26, 2025, challenging the decision. In her ruling on February 27, 2025, Justice Mwangi issued stay orders halting the receivership until the case is fully heard and determined.
The court further directed KCB and the receiver managers not to deny Proctor & Allan’s directors access to company assets, offices, and bank accounts.
The dispute stems from a demand notice issued by KCB on February 21, 2025, requiring the company to clear Ksh 4.9 billion in outstanding loans and accrued interest. However, in an affidavit, Proctor & Allan’s director, Stephen Kyalo Nthei, disputed the amount, claiming it exceeded what had been agreed upon with the bank.
The company also alleges that the receiver managers unlawfully took over its operations on February 25, 2025, without prior notice.
Proctor & Allan, a major cereals manufacturer, is linked to prominent businessmen Ngugi Kiuna, former KenGen CEO Edward Njoroge, and former East African Cables chairman Zephania Mbugua—close associates of the late President Mwai Kibaki.
The case will be mentioned on March 13, 2025, for further directions.
