MotorHub Under Administration as KCB Moves to Recover Assets from Insolvent Car Dealer

KCB Bank Kenya has placed vehicle dealer MotorHub Limited under administration, appointing Kereto Marima of KR Consult as administrator, effective 4 November 2025. The move seeks to manage the dealership’s assets and explore recovery options for creditors under the Insolvency Act of 2015.

MotorHub’s Business and Financial Challenges

MotorHub Limited is a Nairobi-based dealership specialising in vehicle imports from Japan, Thailand, the UK, Australia, and South Africa. According to reports, the business is facing insolvency as the wider vehicle import sector in Kenya contends with headwinds, including an increased import duty regime and a significant drop in vehicle registrations.

The regulatory environment has grown more challenging for importers. For instance, the Kenya Revenue Authority (KRA) implemented updated valuation systems for imported vehicles that significantly raised tax burdens for dealers.

Under the administration appointment, Kereto Marima now holds sole authority over MotorHub’s assets and receivables, including its Kiambu Road showroom inventory. His mandate includes assessing restructuring options, negotiating with creditors and exploring sale or rescue pathways. The administration imposes a moratorium on creditor enforcement actions while the process is underway.

Creditors and other stakeholders have been given a deadline to submit verified claims. According to the announcement, claims must be submitted by 8 December 2025 to facilitate proper documentation and equitable treatment under the insolvency process.

Sector Context and Import Duty Pressures

Kenya’s vehicle import sector has been under increasing pressure. A revised Current Retail Selling Price (CRSP) regime and increased import duty took effect as of 1 July 2025, meaning higher costs for dealerships and shrinking margins.

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In the first nine months of 2024, vehicle registrations in Kenya reportedly dropped by around 43 % compared to the same period the previous year, signalling a sharp contraction in demand. These factors combined have put significant strain on businesses like MotorHub.

For dealers, the administration of MotorHub serves as a cautionary tale about the risks associated with imported-vehicle business models amid regulatory change and weak demand. Customers with ongoing finance or trade-in agreements may face uncertainty during the restructuring process. For banks, the move underscores credit risk in asset-intensive sectors exposed to policy shifts.

As the administration process unfolds, interested parties will monitor whether MotorHub can be restructured as a going concern or whether assets will be sold to recover funds for creditors. The role of KCB Bank as secured creditor will be central to how outcomes are determined.