Receivership and liquidation have become the waking nightmares to many a Kenyan corporate manager. With the reading of the national budget just two weeks away, the finance committee should have by now drafted laws for inclusion into the finance bill to ensure that receivers work with company managers, rather than against them. For instance, no law exists on the qualifications of a receiver manager. All what management companies do is set up a receivership and liquidation desk and the same tired faces are sent from one crisis point to another. It matters precious little that the receiver-manager has no knowledge of the management and financial processes involved in running a hotel chain, a steel plant or an agricultural concern.
Receivers are only keen on recovering debts than ensuring business survival and growth.
This approach means they end up stripping the business of vital assets instead of injecting capital for future growth. It is time the finance committee got to the bottom of why receiverships fail in Kenya and provide legal remedies to it. The East African .