NCBA Takes Fresh Control of Multiple Hauliers in Sh7.2bn Debt Row

NCBA Group (NCBA) has taken fresh control of Multiple Hauliers East Africa Limited following a debt dispute involving Sh7.2 billion owed to the financial institution.

The debt to the lender forms part of a larger Sh31 billion in total claims made against the logistics enterprise by a group of lenders and unsecured creditors.

The development comes as the transport firm continues to navigate severe financial distress, which previously saw various institutions seek recovery of outstanding credit facilities through court action and statutory management processes.

Multiple Hauliers, once among the largest heavy commercial transport operators within the East African region, has seen its operations scaled down significantly over recent years as debt obligations mounted.

Several local banks, along with regional trade finance entities, remain exposed to the firm's non-performing loans.

Court filings indicate that the logistics company accumulated heavy obligations across fuel suppliers, equipment financiers, and operational vendors while trying to maintain its fleet footprint.

The broader logistics and haulage market in Kenya has faced pressure from rising fuel costs, shifting cargo haulage preferences along the Northern Corridor, and increased competition from the Standard Gauge Railway (SGR).

Financial analysts note that heavy transport firms that invested heavily in expanding truck fleets through commercial debt faced reduced freight margins, which hampered their ability to meet structured loan repayment plans.

Under the current intervention, administrators and primary secured lenders will oversee key operational decisions and asset recovery strategies to resolve outstanding liabilities.

The lender intends to evaluate asset liquidation options alongside structured operational realignments to recover secured amounts, although unsecured creditors face potential losses given the total debt profile relative to available asset valuations.