KCB Group and Absa Bank Kenya are facing a Sh14.12 billion hit in the loss-making Savannah Cement that was put under administration in November 2022. Savannah’s statement of affairs shows KCB is owed Sh8.89 billion while Absa has a Sh5.23 billion exposure in the cement manufacturing firm. Absa’s loan is in both local currency and dollars, with the dollar portion being $16.45 million (Sh2.16 billion).
The statement of affairs shows that not even the preferential creditors (KCB and Absa) are safe. While the books show a surplus of Sh2.5 billion for preferential creditors, realising the assets will result in a Sh5.52 billion deficit.
