The case of KENATCO Taxi Corporation
KENATCO TAXIS is a transport company that was founded in the 1970’s to offer logistical solutions to Kenya, Uganda, Congo, Sudan, Burundi & Rwanda. In 1975-1976 there was a crisis in the coffee market after Brazil had its coffee affected by frost. This caused a spike in coffee market prices and smuggling of coffee became the order of the day. The KENATCO transport network became the center of the illegal operations as political figures sought to enrich themselves from this new found source of income. This slowly started the decline of the KENATCO Taxis. In February 1996, KENATCO was placed under receivership after it failed to service its loans and meet other financial obligation due to mismanagement.
Its problems had started after KENATCO received a KES.22.4million Loan from the Industrial & Commercial Development Corporation (ICDC) in the mid 1980’s. The loan was meant to buy new vehicles that would help revitalize the already dwindling fleet of KENATCO taxis. By June 2008, the debt had skyrocketed to KES. 368 Million. KENATCO has now been under receivership for over 15years and this continuously exposes it to plunder and mismanagement. At one point KENATCO even sold off some of its expensive Mercedes Limousines for a measly KES.500. (USD$5)! The KENATCO Taxis Ltd. is a good example of a company that would have been saved if the right help had been offered. Asset Information Management done by the KENATCO Taxis Management would have helped them make better decisions regarding their company. The loan offered to them would have helped them boost their business and expand their fleet if they had the proper information on all their assets. Since this was not the case, KENATCO remains a case study in the area of Asset Information Management . It clearly shows that, lack of it can sign off the death certificate for any organization