Kenyans have witnessed several cases where the first generation builds an enterprise from scratch, and the second generation propels it like a meteor, only for the third generation to quickly extinguish it.
Here are some of Kenya's big family businesses that have collapsed in the recent past.
- Tuskys
- Founded by Joram Kamau, now deceased
- The retailer, once a success story, crumbled as debts, family feuds and mismanagement took a toll on the business
- Covid-19 only served to make a bad situation worse, making Tuskys shut branches and lay off workers to remain a shell
- Nakumatt
- Founded by the Atul Shah family
- Grew into one of the most profitable supermarkets in Kenya
- Gross annual revenue was about Sh48.5 billion in 2015.
- Mismanagement, debt and uncontrolled expansion sank the retailer
- Akamba Bus
- Founded by Sherali Hassan Nathoo
- Nathoo died in 2000 and his shares were bequeathed to his wife and two sons
- Sibling rivalry, debt and mismanagement drove the company into trouble
- Its properties, including buses, were auctioned to pay debts
- ARM Cement
- Founded in 1974 by Harjivandas J. Paunrana, now late
- Was one of East and Central Africa's largest cement producers with operations in Kenya, Tanzania, Rwanda and South Africa
- Pradeep Paunrana took over from his father and embarked on expansion
- Debt and mismanagement drove ARM into administration in August 2018
Compiled by The Standard Checkpoint.