High Court Judge Francis Gikonyo has ordered the liquidation of Redhouse Group, a Kenyan marketing communications firm, after failed attempts to rescue the company from insolvency.
The judge appointed an official receiver as provisional liquidator following a report from the court-appointed administrator who declared efforts to revive the company unsuccessful. The administrator had been in place since September 2023.
Redhouse Group was founded in 2012 as an integrated marketing communications firm offering strategic planning, creative design, advertising, and digital marketing services to clients across East Africa. The company was directed by Koome Mwambia and Esther Ngomeli.
In its first year, Redhouse acquired the advertising subsidiary of Media Edge Group in a multi-million shilling deal. In November 2013, the company secured the TBWA Worldwide license for Kenya.
TBWA Worldwide is part of the Omnicom Group with headquarters in New York and African operations coordinated from Johannesburg.
The firm had planned to expand its integrated marketing communications footprint across Kenya, Uganda, Tanzania, Rwanda, and South Sudan.
Directors issued an insolvency notice in September 2023, acknowledging the company had encountered financial difficulties affecting daily operations. The official receiver was appointed as administrator through a resolution of company directors.
Senior Assistant Official Receiver Diana Mumo told the court that Redhouse had become insolvent with no likelihood of recovery. The administrator’s term ended automatically on September 28 of last year.
Known creditors made formal demands against the company and filed proof of debt forms, but the administrator was unable to satisfy any claims.
The administrator could not pay creditors, including preferential creditors, as the process of collecting company assets remained incomplete.
Under the liquidation proceedings, the provisional liquidator will trace, collect, and preserve the company’s assets, including trade receivables, to maximize returns for creditors.
Andrew Maxe Smollo confirmed through an affidavit that he served creditors with the liquidation application through their known email addresses on January 30 of this year.
The court has ordered creditors be notified through advertisements in the Kenya Gazette and a newspaper of nationwide circulation. The company’s website currently displays a message stating the site will be available soon.
