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Home » PR Firm Redhouse Group Closes After Years of Financial Struggles

PR Firm Redhouse Group Closes After Years of Financial Struggles

NyongesaSande News Desk by NyongesaSande News Desk
12 months ago
in Breaking News
Reading Time: 2 mins read
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PR Firm Redhouse Group Closes After Years of Financial Struggles

Kenya’s marketing and communications industry has been shaken by the closure of Redhouse Group, once considered a rising star in the PR and advertising space. On June 9, 2025, High Court Judge Francis Gikonyo ordered the liquidation of the firm after declaring it insolvent and beyond recovery.

The decision followed a report by a court-appointed administrator, who had been overseeing the firm’s affairs since September 2023. The administrator concluded that efforts to rescue Redhouse Group had failed, prompting the court to appoint an official receiver as the provisional liquidator.

Founded in 2012, Redhouse Group quickly made a name for itself as an integrated marketing communications agency, providing services in strategic planning, creative design, advertising, and digital marketing across East Africa. Its co-founders, Koome Mwambia and Esther Ngomeli, positioned the company as a formidable player in the region’s fast-growing communications sector.

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In a bold move during its first year, the firm acquired the advertising division of Media Edge Group in a multi-million shilling deal. Just a year later, in November 2013, Redhouse secured the TBWA Worldwide license for Kenya, giving it access to a global advertising network under the Omnicom Group, headquartered in New York.

The company had ambitious plans to expand its operations across Kenya, Uganda, Tanzania, Rwanda, and South Sudan. But despite its early momentum, Redhouse began experiencing financial distress that culminated in a formal insolvency notice issued in September 2023.

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According to Senior Assistant Official Receiver Diana Mumo, the company had become insolvent with no realistic prospect of revival. The administrator’s term ended on September 28, 2024, with creditors left unpaid, including those with preferential status.

Court documents reveal that despite formal claims filed by creditors through proof of debt forms, the administrator failed to meet any of the liabilities. The process of recovering the firm’s assets—particularly trade receivables—remained incomplete.

As part of the liquidation process, the court directed that the provisional liquidator should now trace, collect, and preserve all company assets to maximize returns for creditors. Andrew Maxe Smollo, representing the creditors, confirmed via affidavit that a liquidation application had been served through official email notices on January 30, 2025.

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The High Court has now ordered that all known creditors be notified through advertisements in the Kenya Gazette and a national newspaper, ensuring transparency in the process. Meanwhile, the company’s official website remains inactive, only displaying a message that it will be “available soon.”

The fall of Redhouse Group serves as a sobering reminder of the volatility in Kenya’s marketing and PR landscape—where even high-profile firms with international affiliations are not immune to financial collapse. As liquidation proceeds, stakeholders now await clarity on asset recovery and any potential payouts to unpaid creditors.

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