Equity Bank Appoints New Managers for Swafi Foods in Insolvency Process
- Swafi Foods Limited has been placed under administration by Equity Bank and new managers have been appointed
- The administrators officially took over the company’s management, with a mandate to preserve its assets and ensure value for creditors
- Creditors have been instructed to submit their claims, supported by documentation, to the administrators by September 18, 2025
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Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
Swafi Foods Limited has been officially placed under administration.
Source: Facebook
Equity Bank appointed joint administrators from Anant Bhatt LLP to take over the management of the company, which has been operating since 2011.
The notice issued by Anant Bhatt LLP stated that the appointees took over the management of the company effective August 16, 2025.
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The decision was made under the provisions of the Insolvency Act, 2015, to protect the company’s assets and interests of its creditors.
Swafi Foods goes into administration
In a notice published in local dailies, the bank confirmed that Manish Shah and Pauras Bhatt of Anant Bhatt LLP will serve as joint administrators of the food processing company.
"Kamal Anantroy Bhatt and Jai Kamal Bhatt, of Anant Bhatt LLP, have been appointed as Joint Administrators ("the Administrators") of Swafi Foods Limited (Under Administration) by Equity Bank Kenya Limited," read the public notice in part.
Their role will be to manage the affairs of Swafi Foods, preserve its assets, and work toward a restructuring or realization strategy for the benefit of stakeholders.
What should Swafi Foods creditors do?
Creditors of Swafi Foods have been asked to submit their claims to the administrators, along with supporting documents, within the statutory timelines.
"Any party having a claim against the Company to submit their claim in writing with the relevant supporting documentation to the Administrators on or before the 18th of September 2025 for consideration," the administrators said.
Notably, any ongoing or intended legal proceedings against the company can only proceed with the consent of the administrators or court approval.
Source: Facebook
Why are companies placed in administration?
A company like Swafi Foods could be placed under administration due to financial distress that make it unable to meet its debt obligations.
The Insolvency Act (No. 18 of 2015) provides a clear framework for placing a company under administration to ensure the creditors get as much returns as possible.
The initial administration period lasts 12 months but may be extended through a court order or with creditor consent for up to six additional months.
Administration allows an independent insolvency practitioner to step in and manage the company with the goal of stabilising its affairs, protecting assets, and safeguarding the interests of creditors.
This process can give the business breathing space to restructure, negotiate with creditors, or find potential buyers, rather than immediately collapsing into liquidation, which often results in greater losses for all stakeholders.
Other Kenyan companies under administration
Swafi Foods Limited joins a list of multiple Kenyan companies that have been placed in administration or liquidation in recent years.
Earlier, TUKO.co.ke reported that Thika-based liquor manufacturer Africa Spirits Limited was placed under administration nearly six years after a damaging Kenya Revenue Authority raid crippled its operations.
The company appointed Peter Kahi of PKF Consulting Limited as administrator on June 17, 2025.
Other Kenyan firms like Sendy, Mastermind Tobacco, and TransCentury Limited, which were recently placed under administration or receivership due to mounting debts, in an economic environment that has been characterised by high taxes, and rising operating costs.
Source: TUKO.co.ke
