The High Court in Nairobi has dismissed allegations of mismanagement against the administrators of Copia Kenya Limited, ordering the company into final liquidation and appointing the same KPMG practitioners who oversaw its failed administration to wind up the business.

In a ruling delivered on September 17 and gazetted this week, Justice Rhoda Rutto rejected an application by unsecured creditor Tuffsteel Limited for preservatory orders, a forensic audit, and the appointment of an independent liquidator, finding that the allegations of impropriety were “speculative and unsupported by evidence.”

The decision brings to a close a contentious administration process that began in May 2024 when Copia, once among Africa’s most-funded e-commerce ventures, was placed under court-supervised administration after failing to secure fresh investment.

A Startup’s Collapse

Copia Global was founded in 2013 by former Silicon Valley executives Tracey Turner and Jonathan Lewis, with backing from investors including Enza Capital, Goodwell Investments, DOB Equity, and Lightrock. The company raised more than $120 million over a decade, promising to bring e-commerce to rural African consumers through a network of local agents — over 30,000 by 2023, 81 percent of them women.

The model proved difficult to sustain. Rural household incomes remained low, logistics costs stayed high, and the infrastructure needed to support last-mile delivery in underserved regions did not materialise at the pace investors had anticipated.

By 2024, the company had laid off over 1,000 employees. In May of that year, Copia’s board approved a Chapter 7 bankruptcy filing in the United States, disclosing $45.5 million in liabilities against just $404,000 in assets and $20,300 in cash. The petition noted that after administrative expenses, “no funds will be available for distribution to unsecured creditors.”

The Kenyan unit’s fate was sealed when administrators from KPMG failed to secure new investment. What followed was a two-year administration marked by asset realisations, creditor consultations, and growing frustration among unsecured creditors who faced the prospect of recovering little or nothing.

The Final Ruling

The court considered two applications: one from the Joint Administrators seeking liquidation and their own appointment as liquidators, and another from Tuffsteel seeking to block or condition that outcome.

Tuffsteel, owed Kshs 13.3 million ($103,000) for goods and services supplied to Copia, argued that liquidation without adequate safeguards would prejudice unsecured creditors. The company demanded a comprehensive inventory of assets, disclosure of all transactions during administration, and an independent forensic audit covering the three years preceding administration.

Jastan Traders Limited, another unsecured creditor owed Kshs 793,022 ($6,100), supported Tuffsteel’s position. It specifically questioned the reported sale of Copia’s brand, intellectual property, and transactional data to Copia Holdings Limited, asking whether the transaction was at arm’s length and for fair market value.

The administrators — Anthony Makenzi Muthusi and Julius Mumo Ngonga of KPMG Advisory Services — denied any wrongdoing. They told the court they had conducted the administration transparently, issued statutory notices, invited creditors to lodge proofs of debt, and circulated regular reports.

Court’s Findings

Justice Rutto’s ruling was blunt in its assessment of the evidence.

“The Court cannot act on speculation, apprehension, or suspicion alone,” she wrote. “There must be material demonstrating that the administrators have acted in breach of their statutory duties, exceeded their mandate, acted in bad faith, or otherwise conducted the administration in a manner prejudicial to creditors.”

The judge found no such material.

On the alleged sale of Copia’s intellectual property, the court noted that “no independent valuation, expert opinion or other cogent evidential material has been presented to demonstrate that the consideration received was manifestly below market value or that the transaction constituted a transaction at an undervalue.”

Regarding the administrators’ proposed appointment as liquidators, the court held that Kenyan insolvency law does not prohibit an administrator from subsequently serving as liquidator of the same company.

“Continuity of office is itself a relevant consideration,” Justice Rutto wrote. “Having administered the affairs of the Company, become familiar with its assets, liabilities, creditors and operational history, the Joint Administrators are uniquely positioned to conduct the liquidation efficiently and economically.”

Financial Picture

According to the administrators’ Third Creditors’ Report dated March 12, 2026, Copia Kenya’s realisable assets were estimated at approximately Kshs 206.6 million ($1.6 million), against creditors and administration costs of approximately Kshs 169.5 million ($1.3 million).

The figures suggest that after preferential claims and the costs of liquidation — including liquidators’ remuneration, statutory advertising, and professional fees — unsecured creditors are unlikely to receive any distribution.

Tuffsteel had argued that liquidation would only add costs without improving outcomes for unsecured creditors. The court acknowledged this concern but held that the mere possibility of low recovery could not justify prolonging an administration that no longer served its statutory purpose.

“To hold otherwise would be to elevate individual creditor interests above the collective interests of the creditors as a whole,” the judge wrote.

While Copia’s creditors confront the prospect of total losses, the company’s founding team had since moved to a new venture.

Stahili, launched in 2025, is a survey and rewards platform that offers users mobile data or cashback for completing short surveys. Timothy Steel, former CEO of Copia, serves as Stahili’s CEO. Michael King, Copia’s former CTO, is CTO. Tracey Turner, who chaired Copia, chairs Stahili.

What Happens Next

The liquidation order was gazetted on September 24, formally appointing Muthusi and Ngonga as Joint Liquidators. Their immediate tasks include taking control of Copia’s remaining assets, adjudicating creditor claims, and conducting the statutory investigations into the company’s affairs that Tuffsteel had sought to compel before liquidation.

Those investigations, under sections 682 to 684 of the Insolvency Act, may still examine transactions at undervalue, preferential payments, and potential misfeasance by directors or officers. The liquidators have the power to pursue such claims if evidence emerges.

Tuffsteel and Jastan Traders retain the right to challenge the liquidators’ conduct under sections 591 and 592 of the Act. But for now, their efforts to subject the administration to independent scrutiny have failed.

The court’s ruling underscores a tension at the heart of insolvency law: the interests of individual creditors versus the collective interest in bringing failed enterprises to a timely conclusion. In Copia’s case, the court chose finality.

“Continued administration would serve no useful purpose and would only occasion further delay and expense to the detriment of creditors,” Justice Rutto wrote.

For Copia’s unsecured creditors, the practical outcome is likely to be the same either way: little or nothing recovered. For Kenya’s insolvency practitioners, the ruling offers reassurance that administrators will not be second-guessed without concrete evidence of wrongdoing.

For the founders of Copia, the liquidation marks the formal end of one venture — and the continuation of another, built on lessons learned, or perhaps simply on a smaller canvas.