Kenyan tycoon Ahmed Hashi’s Hashi Energy announces major asset sale to settle $39-million debt

Oluwatosin Racheal Alabi -

Key Points:

  • Hashi Energy Ltd. is under liquidation, selling various properties and assets across Kenya to settle a Sh5 billion ($38.5 million) debt.
  • The company is selling 31 prime movers, a gas cylinder revalidation plant, and numerous plots of land in key cities including Mombasa, Eldoret, Nairobi, and Kisumu.
  • Founded by Ahmed Hashi, the company has a rich history of expansion across Africa, but financial difficulties have led to its current liquidation process.

Hashi Energy Ltd., an integrated energy provider founded by Kenyan businessman Ahmed Hashi, is under liquidation and has announced the sale of various properties and assets. The company is selling 31 prime movers, a gas cylinder revalidation plant, and various properties across multiple locations, including Mombasa, Eldoret, Nairobi, and Kisumu.

Billionaires.Africa recorded the company’s debt of Ksh5 billion ($38.5 million) owed to Ecobank Transnational Incorporated (Ecobank) has prompted the bank to initiate the sale of the company’s assets to recover the debt.

Key assets for sale

The company is selling 31 prime movers, including SITRAK models of SinoTruk, with 27 units in Mombasa, three in Eldoret, and one in Nairobi. Additionally, the firm is disposing of a gas cylinder revalidation plant on Nanyuki Road, Nairobi.

Among the notable properties for sale is a three-acre plot in Changamwe, Mombasa County, leased for 60 years from Dec. 1, 2009, which features a cold storage warehouse, maintenance warehouse, administrative and office blocks, and other facilities. There is also a 1.447-acre plot in Changamwe, leased for 99 years from Jan. 1, 1977, comprising an LPG tank and additional amenities.

In Kisumu Municipality, various vacant plots in the Industrial area, ranging from 0.075 to 0.128 acres, are available with lease terms of 99 years from April 1, 1990. Other notable properties include a 0.1722-acre plot with a two-storey open-plan office block, warehouse, and compressor shed, leased for 67.5 years from Jan.1 1980, and another 0.1722-acre plot with an LPG shed, genset room, and LPG cage with similar lease terms.

The liquidator of Hashi Energy has invited competitive bids, offering an opportunity for investors to acquire the company’s valuable assets across multiple locations. This financial challenges has led to the company’s decision to liquidate, involving the sale of its assets to pay off debts and distribute any remaining assets to shareholders.

History and expansion of Hashi energy

Founded in 1991 as Hashi Empex by Ahmed Hashi and his wife, Fatuma, Hashi Energy initially started as a kerosene distributor for Chevron Kenya. Using kerosene jerry cans, the company supplied African regions such as Rwanda and the Democratic Republic of Congo (DRC) markets. In the mid-1990s, the company expanded its operations by acquiring depots in western Kenya, which allowed it to better serve the local market and expand its reach to the export market in East and Central Africa.

In 2008, the company rebranded to Hashi Energy, broadening its scope to include the importation, distribution, and marketing of petroleum products, including bulk trading and service stations. Hashi Energy’s presence grew beyond Kenya, extending into countries such as Uganda, Rwanda, Tanzania, Zambia, Southern Sudan, the United Arab Emirates, Mauritius, and the Democratic Republic of Congo.

Major moves and financial challenges

In 2017, Hashi Energy sold off its petrol stations to Lake Oil, a Tanzanian company. This sale was followed by a substantial deal in 2019 with a Dubai conglomerate worth $140 million, which involved supplying food and fuel to military personnel and non-governmental organizations in the Democratic Republic of Congo, despite these expansions, the company has been grappling with financial difficulties.

On March 10, 2023, Hashi Energy issued a notice to its creditors, calling for a meeting to consider and pass a resolution for the company to be wound up voluntarily. The resolution was subsequently passed, and KVSK Sastry was appointed as the liquidator to oversee the process.

The impending auction marks a challenging juncture for Hashi Energy, prompting speculation about its future direction under new ownership. The auction of these valuable assets provides an opportunity for investors to acquire prime properties and assets, potentially steering the company towards a new chapter.