KCB Bank Places Diamond Industries Under Receivership
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KCB Bank Kenya has placed Diamond Industries Limited, a Mombasa-based manufacturing firm, under receivership. Joy Vipinchandra Bhatt has been appointed as the Receiver and Manager of the company, effective May 22, 2025.
Diamond Industries Limited is known for its consumer goods under well-known brands such as Sunpride cooking oil, Raha cooking fat, Panga soap, and Fortune soaps. The receivership means the company’s operations and assets will now be managed by the appointed Receiver on behalf of KCB Bank Kenya, the secured creditor.
According to the official receivership notice, “Joy Vipinchandra Bhatt has been appointed as the Receiver and Manager of Diamond Industries Limited, Mombasa.”
“This is to notify all interested stakeholders that following the Receiver’s appointment, the affairs of the company shall be directed by the Receiver, whose powers extend to all assets and undertakings of the Company. Only the Receiver and his duly approved representatives are authorized to deal with the assets of the company.” the statement added.
The notice further warns that any party dealing with the company’s assets without written consent from the Receiver will face legal consequences.
Read: KCB Group Shareholders Approve Dividend Payout for FY2024
The appointment of a Receiver under Kenya’s Insolvency Act, 2015 typically occurs when a company fails to meet its debt obligations. In such cases, the secured lender has the right to appoint a receiver to take control of the borrower’s secured assets in an effort to recover outstanding debts.
Bhatt’s role as Receiver and Manager includes overseeing Diamond Industries’ financial and operational affairs, evaluating its viability, and determining the most effective course for debt recovery. This may involve restructuring the business, continuing operations, or liquidating assets.
Diamond Industries Limited operates in Kenya’s fast-moving consumer goods (FMCG) sector and has long been a recognizable name in coastal Kenya and beyond. Its manufacturing facility in Mombasa has been key to the production and distribution of household products widely used across the region.
The receivership of Diamond Industries comes amid rising credit risks in Kenya’s manufacturing sector, where several companies have faced operational strain due to debt servicing challenges and market pressures.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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