Nyahururu milk processor placed under receivershipTuesday May 17 2022
The Nyahururu-based Countryside Dairy has been put under receivership after its collapse early this year amid claims of mismanagement.
The processor, where a Dutch-based DOB Equity has an undisclosed stake, will now be under the administration of the government Official Receiver.
The company was founded by its CEO George Mwangi in 2014, who is also a former East African Cables managing director.
“Take note that the Official Receiver has been appointed as administrator of Countryside Dairy Limited by the board of directors in accordance with the insolvency Act 2015,” said the administrator in a letter dated May 10.
The administrator has urged creditors to send full particulars of all the claims that they may have against the company personally or through their advocates and that they should be ready to argue their case.
Mr Mwangi did not respond to the Business Daily by press time as the phone call went unanswered. Processors have been struggling with stiff competition for milk in the informal sector, making it difficult for them to operate optimally in the market.
The situation has been worsened by the ongoing drought that has seen supplies from farmers drop significantly, forcing all the processors to operate below their installed capacity following the drought that started last October.
Processors' income has also been hurt by the high cost of packaging material that has gone up by 20 percent in recent days.
The Dairy has been receiving supplies of raw milk from more than 20,000 farmers drawn from Nyandarua and Laikipia Counties.
DOB Equity had in 2016 injected an undisclosed amount to the firm to allow it to scale up its production capacity and expand its reach across the market, then it would take up a stake in dairy as part of a commitment to increase social impact investment deals in Kenya.
DOB Equity is a Dutch family office investing in innovative and scalable businesses in East Africa. It has offices in Nairobi, Dar es Salaam and in the Netherlands. Before its collapse, Countryside Dairy had been making deliveries of pasteurised fresh milk products for the low-income market segment and institutional organisations.
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