1 hour ago • Visible to anyone on or off LinkedIn
Equity Bank Limited Kenya has placed Swafi Foods Limited under administration, marking a significant step in addressing the company’s financial challenges under the Insolvency Act of 2015. Effective August 18, Kamal Anantroy Bhatt and Jai Kamal Bhatt of Anant Bhatt LLP were appointed as joint administrators, granting them full authority over the company’s assets and business operations. This move transfers all management powers previously held by Swafi Foods’ directors to the administrators, who will now oversee restructuring efforts and handle financial obligations on behalf of the company.
Swafi Foods Limited, incorporated in Kenya in 2011, has built a solid reputation in the tea industry through its production and exportation of high-quality teas. As a member of the East African Tea Trade Association and a registered company with the Tea Board of Kenya, Swafi Foods has established itself as a trusted brand locally and internationally. Its diverse product portfolio includes Premium, Classic, and Economy teas, as well as Swafi Spaghetti and Swafi Rice, underscoring its commitment to providing high-quality and affordable food products while maintaining integrity and ethical business practices.
In line with insolvency procedures, parties with claims against Swafi Foods are required to submit written claims with supporting documentation to the administrators by September 18. The administrators, acting solely on behalf of the company, are not personally liable for its obligations. This process provides an opportunity for creditors to present their claims as restructuring plans unfold, with Anant Bhatt LLP serving as the point of contact for all inquiries and related matters from its offices in Mombasa.
This development comes as Equity Group continues to demonstrate financial resilience, reporting a profit after tax of Ksh34.6 billion, a 17% increase from the previous year. The bank’s growth was supported by a 9% rise in net interest income, coupled with an 18% reduction in interest expenses, and further boosted by its strongest quarterly performance in four years. Equity’s robust financial position, reflected in the expansion of its loan book to Ksh825.1 billion and customer deposits rising to Ksh1.32 trillion, highlights the Group’s ability to balance strategic transformation with consistent profitability. This resilience is particularly significant as it continues to support key sectors such as agriculture, manufacturing, mining, and SMEs within Kenya’s economy.