Wananchi Group (K), which trades as Zuku, risks liquidation after a fibre network equipment supplier filed a Sh46.9 million insolvency demand over unpaid bills.
CP Cables moved to court to enforce the alleged debt tied to fibre equipment deliveries made last year. The firm issued Wananchi a statutory demand under the Insolvency Act (2015), requiring payment, securing, or disputing the amount within 21 days. The demand was lodged in Nairobi’s High Court Commercial and Tax Division as an insolvency case.
The claim stems from cables and related equipment, including optical network units, supplied under a local purchase order from Wananchi.
The amount covers accumulated invoices from May and November 2025, which CP Cables claims remain unsettled.
In the notice filed in court, CP Cables warned that non-compliance could lead to a liquidation petition against Wananchi.
Under Section 384 of the Insolvency Act, ignoring a statutory demand within 21 days serves as evidence of insolvency—meaning the company cannot meet its financial obligations.
CP Cables maintains that this is an unpaid commercial debt and insists Wananchi must either settle the amount or prove a valid counterclaim. Otherwise, the insolvency proceedings will advance.
Wananchi has not responded to the demand in court, and the company has not publicly commented on whether it will pay, challenge or seek an extension.
The dispute highlights financial strains in Kenya’s rapidly growing yet fiercely competitive digital and fibre-optic sector, where network expansion depends heavily on imported equipment and specialized suppliers.
Wananchi runs one of Kenya’s largest pay-TV and broadband internet platforms under Zuku. It is a subsidiary of Wananchi Group Holdings, majority-owned by Mauritius-based Axian Telecom, a pan-African operator active across East and Southern Africa.
Axian has positioned Wananchi as a key player in Kenya’s broadband market, investing in fibre infrastructure and last-mile connectivity. Failure to act within 21 days could prompt CP Cables to seek liquidation, potentially disrupting operations, straining supplier ties, and unsettling customers and financiers.
