ARM Cement moves to wind up operations as liquidation nears completion

Collapsed Nairobi-based cement manufacturer ARM Cement Limited has announced plans to formally wind up its operations, as joint administrators move to conclude liquidation proceedings amid heavy debt obligations and unresolved tax liabilities across East Africa.

In their latest status report to creditors, joint administrators Muniu Thoithi and George Weru said the wind-up will be conducted in an orderly manner, with priority given to settling outstanding matters, distributing available funds to creditors, and closing subsidiaries.

Tax disputes delay final closure
In Kenya, the liquidation process has been slowed by an unresolved tax dispute with the Kenya Revenue Authority (KRA). The administrators said they are engaging the tax authority to adjudicate and settle dividends due in respect of outstanding liabilities, with a target to resolve the matter by June 2026.

Once concluded, the liquidators will seek formal confirmation that all pre- and post-administration tax obligations have been addressed in accordance with insolvency laws. They noted that most tax issues have already been resolved and do not anticipate significant changes to the company’s current tax liability position.

Outside Kenya, ARM Cement is also addressing outstanding tax liabilities with the Tanzania Revenue Authority and the Rwanda Revenue Authority following asset disposals, including those related to Kigali Cement Company Ltd.

The administrators expect the ARM Tanzania transaction to be completed in the first half of 2026, subject to resolution of the Tanzania tax matter, but cautioned that the subsidiary’s liquidation is unlikely to generate a material surplus for the parent company.

Creditors face limited recovery
ARM Cement Ltd., the Nairobi-based manufacturer of Rhino-branded cement with operations in Kenya, Tanzania and Rwanda, is winding down as debt pressures persist. Outstanding liabilities stand at Ksh11.8 billion ($91.5 million), reduced from Ksh20 billion ($155.1 million), owed to preferential, secured and unsecured creditors.

To date, unsecured creditors have received a 7.61% recovery on their reviewed claims. The administrators warned that, given the substantial utilization of realized funds, unsecured creditors should not expect significant additional payouts beyond any residual balances remaining after operational obligations are settled at the close of the process.