Kenya’s Oldest Truck Body Builder, Labh Singh Harnam Singh Limited (LSHS), has been placed under administration, with joint administrators preparing to auction its Syokimau factory, machinery, and land to repay a Sh1.1 billion debt owed to KCB Group.
Founded in 1950, Labh Singh Harnam Singh Limited (LSHS) was once a dominant force in the East African automotive industry, manufacturing high-quality truck and bus bodies for both local and regional markets. But after decades of growth, the company has run into financial turmoil that now threatens to dismantle its legacy.
Background and Legacy of LSHS
Established in Nairobi, LSHS began as a modest operation but expanded into a leading manufacturer of bus and truck bodies. By the late 1990s, it had scaled production from 20 units per month to 80 units, supplying regional automotive giants including General Motors East Africa (Isuzu), Cooper Motor Corporation (Nissan), Simba Colt Limited (Mitsubishi), and fleet operators such as Kenya Bus Services, Eldoret Express, and Dolphine Coaches. The company also served clients in Uganda, Rwanda, Burundi, Malawi, Zambia, Mozambique, and Zimbabwe.
LSHS’s state-of-the-art manufacturing facility, located along Mombasa Road opposite the Nation Newspapers Plant, was built on a 99-year leasehold beginning in 1983, with 58 years still remaining. The facility included interconnected godowns forming an “H” shape, a factory block, office complex, gatehouse, and auxiliary structures. It was fitted with specialized plant and machinery for building truck and bus bodies, including tankers, tippers, flatbeds, containers, and side loaders. The complex relied on electric power, rainwater harvesting, and septic tank drainage, making it one of the region’s best-equipped automotive body fabrication plants.
Financial Distress and Administration
Despite its historical success, LSHS has faced mounting financial challenges in recent years, driven by a weakening shilling, high operating costs, and growing competition from cheaper imported vehicles. The downturn in the Kenyan automotive industry worsened matters, with demand for new buses and trucks falling from 9,824 units in 2015 to 5,766 units in 2024, according to the Kenya Motor Industry Association.
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The company’s inability to repay a Sh1.1 billion loan from KCB led to its placement under administration by the High Court on February 4, 2025. Joint administrators, Ponangipalli Venkata Ramana Rao and Swaroop Rao Ponangipalli of Tact Consulting LLP, were appointed to manage its affairs and protect creditors’ interests under Kenya’s Insolvency Act of 2015.
The Act provides distressed firms with a period of protection to attempt recovery. For LSHS, this meant that its directors lost management powers, while administrators took control of operations, calling on creditors to submit claims by March 15, 2025, later extended to August 30, 2025. However, as restructuring efforts stalled, the administrators resolved to auction the company’s assets to meet its debt obligations to KCB.
Asset Sale Details
The sale, managed by Phillips International Auctioneers under the administrators’ instructions, involves LSHS’s prime 5.011-acre industrial property in Syokimau, Machakos County. The property, registered under Title No. L.R. 12715/596, includes land, factory buildings, interconnected godowns, plant, machinery, and office blocks.
Interested buyers must submit sealed bids clearly marked “BID FOR PROPERTY AND MACHINERY – L.R. NO. 12715/596” to Phillips International Auctioneers by September 24, 2025, at 11:00 AM. A refundable deposit of 10% of the bid amount, payable via bank transfer or deposit, is required. The balance must be settled within 90 days of bid acceptance, with deposits forfeited if payment deadlines are missed.
The administrators reserve the right to accept or reject any bids, in full or in part, and are not obligated to take the highest offer. Viewing and inspection of the assets are available during regular working hours. Auction details can be accessed at the auctioneer’s offices or through official online platforms. Inquiries are directed to George Muiruri of Phillips International Auctioneers, available at 0721244842, 0722427202, or 0727872478.
Industry Context and Challenges
The collapse of Kenya’s Oldest Truck Body Builder is part of wider turbulence in the country’s automotive and manufacturing industries. Several long-standing firms have either scaled down operations or shut down entirely. CMC Motors Group exited the East African market, while Mobius Motors wound up its Kenyan operations.
Other Kenyan companies, including Mastermind Tobacco, Sendy Group, Vehicle and Equipment Leasing Limited (Vaell), and Copia, have also been placed under administration since 2023. Their struggles point to rising costs of doing business, constrained consumer demand, and currency volatility that have hit industries reliant on capital-intensive operations.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.