Creditors vote to liquidate Abraaj Kenya Advisers

Creditors owed by collapsed private equity firm Abraaj Kenya Advisers Limited have voted for its liquidation.

This is after a creditors voluntary winding up meeting held virtually last week, this means members and creditors will settle without having to go to court.

The creditors meeting saw Muniu Thoithi and George Weru appointed as the joint liquidators to oversee the winding up.

Creditors are now required to prove their claims or debt before June 15.

"Creditors of the company are required on or before June 15 to send full particulars of all the claims they may have against the company,” said a notice published in the dailies on Monday.

Directors of the company Ashish Patel and Benjamin Ikenye had convened the creditors meeting last week.

The firm is linked to Dubai-based private equity fund Abraaj Group and troubles started over a year ago due to allegations of misuse of funds including a $1 billion healthcare fund.

It had billions worth of investment portfolio including in health care and restaurants spanning Africa.

These investments included in Java, Avenue Hospital, Nairobi Women’s Hospital but has since offloaded most of its stake.

Last year, the Dubai Financial Services Authority (DFSA) fined two entities of private equity firm Abraaj $315 million, which was the largest financial penalties it had ever imposed.

In 2019 it notified the Capital Markets Authority (CMA) of its intention to cease operation of licensed activities.

The notice sought to assure operations of entities affiliated to it. “We wish to clarify that the company in liquidation will not affect the operations of any other entity that was affiliated to Abraaj Kenya Advisers Limited,” it said.