Labh Singh Harnam Singh Limited (LSHS), one of Kenya’s oldest and biggest truck and bus bodybuilders, has put its assets up for sale after owing Sh1.1 billion to KCB Group. This comes just six months after the company was placed under administration in February 2025.
Asset Sale Details
The joint administrators of LSHS, Ponangipalli Venkata Ramana Rao and Swaroop Rao Ponangipalli, have invited bids for the company’s assets. These include:
- A 5.011-acre parcel of land in Syokimau, Nairobi.
- Godowns, a factory with plant and machinery used for fabricating and repairing truck and bus bodies.
- Office blocks
The deadline for submissions is September 24, 2025. But the joint administrators have warned they reserve the right to reject any bid, highest or otherwise.
Background of LSHS’s Financial Woes
LSHS has been in operation since 1950. At its peak, it commanded the biggest market share in Kenya and East Africa. The company had a production capacity of up to 60 units per month and serviced orders from big brands like Isuzu East Africa, Scania East Africa, Hino Motors Kenya and others.
But after struggling to service its Sh1.1 billion debt, LSHS was placed under administration by the High Court on February 4, 2025. The administrators are now looking for ways to either revive the business or sell its assets to settle the debts.
A Growing Trend of Companies in Administration
LSHS’s situation is part of a growing trend in Kenya where several companies are facing similar financial struggles and going into administration. Other firms that have gone into administration recently include:
- East African Cables Plc (EAC, Kenya) which owed Sh2.2 billion to Equity Bank
- Mastermind Tobacco, Kenya’s second-largest cigarette manufacturer which owed an undisclosed debt to I&M Bank* Sendy Group, a tech-based logistics firm that defaulted in 2023.
- Vehicle and Equipment Leasing Limited (Vaell) which defaulted on Sh1.1 billion.
- Copia, an e-commerce firm that struggled with fundraising as costs rose.
The Administrators’ Role
In administration, third-party administrators are appointed to either rescue the business or sell its assets. The goal is to get a better outcome for creditors than what they would get in a liquidation. In some cases, businesses may be restructured and efforts made to get them back to profitability.
For example EAC, Kenya is being handled by PricewaterhouseCoopers (PwC) who are looking to recapitalise the company or sell its assets.