Kenyan businessman Henry Njeru’s tea company placed under administration

Njeru Industries Limited, a family-owned tea company controlled by Kenyan businessman Henry Njeru, has been placed under administration following a court order issued on Sept. 3 under the Insolvency Act. The move highlights growing challenges in Kenya’s $1.3 billion tea sector.

Court appoints administrators at Njeru Industries

The court appointed insolvency practitioners P.V.R. Rao and Swaroop Rao Ponangipalli as joint administrators, transferring control of the company’s operations and assets from its directors. Creditors have until Sept. 30, 2025, to submit their claims.

The decision comes amid mounting pressure on Kenyan tea exporters from lower auction prices, unpredictable weather, and rising production costs. Based in Meru, Njeru Industries processes tens of thousands of kilos of green leaf daily sourced from smallholder farmers. Like many others in the sector, the company has struggled to keep up with these challenges.

Farmers, creditors face uncertainty

Court filings do not detail the specific creditor actions that led to the administration. Industry observers say cash-flow issues are common, often stemming from delays in export payments while farmers still need to be paid promptly.

Rao and Ponangipalli of Tact Consulting, both seasoned in Kenyan insolvency cases, now oversee Njeru Industries. They are tasked with protecting the company’s value while determining whether it can be restructured, sold, or liquidated.

The administration has left smallholder farmers uncertain about payment, creditors waiting to recover funds, and employees in Meru concerned about job security. The situation has drawn attention across Kenya’s tea-growing regions, where other factories face similar difficulties.

Kenyan agribusiness confronts financial pressures

Henry Njeru, owner of Njeru Industries, expanded the company into specialty teas, including purple and orthodox varieties, attracting interest from exporters and investors. The company’s financial struggles underscore the challenges Kenyan agribusinesses face in balancing growth ambitions with the practical realities of cash flow. 

Njeru Industries’ situation reflects broader issues affecting agricultural exporters in Kenya, including global demand shifts, currency fluctuations, and rising operational costs.