NAIROBI, Kenya, Feb 25 – Collapsed cement manufacturer ARM Cement Limited has announced plans to wind up its operations as administrators move to conclude liquidation proceedings amid mounting debt and unresolved tax liabilities.
In a latest status report to creditors, joint administrators Muniu Thoithi and George Weru said the wind-up will be conducted in an orderly manner, factoring in settlement of outstanding matters, payments to creditors and closure of subsidiaries.
In Kenya, the company is seeking to resolve an outstanding tax dispute with the Kenya Revenue Authority (KRA), which has delayed conclusion of the liquidation process.
“In this regard, the liquidators will be engaging KRA with a view to adjudicating upon and ultimately settling the dividends due in respect of these liabilities. We expect to resolve this matter by June 2026,” the report said.
The administrators added that once the process is finalised, they will seek confirmation from KRA that all pre- and post-administration tax matters have been resolved in line with insolvency laws. They noted that most tax issues have been addressed and do not expect significant changes to the company’s current tax liability position.
Outside Kenya, outstanding tax liabilities remain with the Tanzania Revenue Authority and the Rwanda Revenue Authority following asset sales involving Kigali Cement Company Ltd (KCCL).
The administrators said the ARM Tanzania transaction is expected to be completed in the first half of 2026, subject to resolution of the outstanding Tanzania Revenue Authority matter, adding that the liquidation of ARM Tanzania is unlikely to yield a material surplus for the parent company.
The firm’s outstanding debt stands at Sh11.8 billion, down from Sh20 billion, and is owed to preferential, secured and unsecured creditors.
“As of the date of this report, dividends distributed to unsecured creditors of the Company amount to 7.61 per cent recovery in relation to their reviewed claims,” the administrators said.
They cautioned that, following substantial utilisation of realised funds, unsecured creditors should not expect significant additional payouts, aside from any residual amounts that may remain after settlement of operational obligations at the close of the process.
