Akamba shuts regional offices

Transport business in East Africa has suffered a major blow after the Akamba Bus Company suspended its operations in Kenya, Uganda and Tanzania.

Passengers, mostly traders and students, were from May 10 forced to find alternative means after the company closed offices due to liquidity problems.

At their booking offices on Lagos Road in Nairobi on Wednesday, the parcel section was still operating but the passenger service had been suspended.

An employee who sought anonymity because he is not authorised to talk to the media said they had stopped booking passengers headed to the region’s capitals.

The staff asked passengers to use the services of Crown Bus, another transport company neighbouring the firm.

Resume in June

He said the management had suspended some of their services and they might resume operations again next month.

“Services have been scaled down to parcels only and the passengers section might resume in June. We are just waiting for the management to give us instructions,” the employee told the Nation.

He said the company would resume operations with the same Akamba trademark.

A visit at their main offices on Kitui Road in Industrial Area found auctioneers carting away the company’s furniture.

An employee said the company was facing financial problems and all they wanted was to be paid their dues.

She said all the telephone lines which had been allocated to the company had been disconnected.

Attempts to get a comment from the firm’s chief executive officer, Mr Karim Nathoo, for the last three days through his secretary were fruitless.

The closure of the regional operations come at a time when the firm’s shareholders agreed on Monday to dispose of its assets to offset its debt and return to business.

Mr Nathoo, director Boaz Nathoo and main shareholders Peter Kamba, Martin Malinda, Richard Mangeli and Kioko Musau agreed to dispose of some property worth millions of shillings to pay off the creditors and resume service.

The decision to offset debts amounting to Sh300 million, most of it owed to KCB and Diamond Trust banks, was arrived at Sarit Centre.

On April 30, 2012, Mr Nathoo was charged with failing to pay 580 workers more than Sh5.7 million in salaries and wages.

Mr Nathoo and two other directors denied the charge and were released on a cash bail of Sh500,000.

The collapse of train services connecting East Africa in 1977 led to the rise of regional bus companies like Akamba. (READ: Judge dismisses petition to wind up Akamba even as its woes increase )