The High Court in Nairobi has appointed a liquidator for the Kampala Coach public transport company, signalling a possible winding up of the firm that is dogged by a family ownership dispute.
Ms Nijud Abdallah Mohamed and Ms Ahlam Adbul Basiet, the only two directors of the company who each own 500 shares on behalf of their cousin fathers Gamal Abdul and Messrs Mohamed Abdul Basiet, are in court over running of the firm.
Ms Mohamed has accused her co-shareholder of excluding her in running of the company and in August 2013 filed a court petition to have the firm either wound up or to have Ms Basiet compelled to buy her off.
The High Court in Nairobi appointed Mr Douglas Wekhomba as the interim receiver in a Friday notice, pending determination of the petition.
“I am preparing myself and the team to get down to work by the end of this week,” said Mr Wekhomba, the chief executive of Nairobi-based Capitalmart Financial Advisory Services.
“The interim liquidator will essentially take over the management of the company to ensure that the company is run in the best way for both shareholders,” Roger Sagana, Ms Mohamed’s lawyer, told the Business Daily.
In 2007, the company had a fleet of about 20 buses that grew to about 55 buses four years later. At the moment, however, only about a dozen are said to be in operation, and Mr Sagana says the actual number can only be ascertained by Mr Wekhomba and his team.
Kampala Coach plies routes in Kenya, Uganda, Rwanda and South Sudan.
Several regional bus companies have had the going tough following increased competition, the growth of air transport and family business disputes.
After 57 years of operation, Akamba Bus shut down due to KSh168 million (Shs5 bilion) owed to a long list of creditors.