Biscuit firm Britania Foods Limited has been put under administration in a bid to craft a strategy to recover suppliers' and creditors' money.
In a public notice, the company withdrew the powers of its directors and appointed Peter Kahi of PKF consulting to take charge of the firm.
''With the appointment, the powers of the administrator extend to all assets and undertaking of the company,'' the notice read in part.
All creditors have been asked to place their claims before September 3.
The takeover by the administrators is coming barely a month after a supplier, Uzuri Foods Ltd, which delivered Britania Foods Ltd with flour between March and August 2019 moved to court seeking to liquidate the biscuit maker over unpaid bills.
It wanted the High Court to appoint Kolluri Venkata Subbaraya as the liquidator and give him the authority to sell assets as a debt recovery strategy.
The firm had sent a statutory demand to Britania on July 8 last year following back and forth between the two companies over the debt.
Under Kenyan law, a creditor is allowed to issue a 21-day statutory notice to a company or individual that is unable to pay its debts for any reason.
The document serves as an ultimatum to repay the debt claimed or agree to a payment plan with the creditor.
The collapse of Nakumatt Supermarket and the crushing of Tuskys dented Britania's financial muscle. The two retail chains owe the biscuit maker at least Sh50 million.
Britania owes Uzuri Foods a total of Sh17.3 million with the principal debt owed at Sh14 million, while Sh3.3 million in interest has accumulated over two years.
Britania, which started out as a small bakery, has been in operation for 34 years, during which it grew into one of Kenya's biggest local brands.
The Kenyan-owned private equity firm Catalyst Principal Partners bought the firm in 2016.