The Commercial Division of the High Court has ordered the liquidation of Sahara Media Group Limited after the company admitted it was facing severe financial challenges and could no longer meet its debt obligations.
The ruling was delivered by Dr Mwajuma Kadilu, who granted the company’s petition seeking to wind up its operations due to insolvency.
Court records show that the application was supported by an affidavit sworn by the company’s chief officer, Steven Diallo, together with several supporting documents.
These included the company’s Memorandum and Articles of Association, a resolution by the board of directors approving the liquidation request, tax demand notices issued by the Tanzania Revenue Authority office in Mwanza, and audited financial statements for 2023 and 2024.
In her ruling, Justice Kadilu said the evidence presented before the court showed the company had suffered substantial losses and was no longer in a position to settle its debts.
She noted that where it is clearly established that a company is experiencing significant financial losses and lacks the capacity to repay creditors, the appropriate legal remedy is liquidation.
The court appointed Alex Mgongolwa of Excellent Attorneys and Frank Mwalongo of Apex Attorneys as joint liquidators to oversee the winding-up process.
Under the Companies Act, the two administrators will manage the liquidation proceedings for three months under the supervision of the court.
The court also issued orders barring any transfer of the company’s assets, shares or changes in its membership from the commencement of the liquidation process.
Evidence presented in court showed that the company owes approximately Sh97.7 million in unpaid taxes to the Tanzania Revenue Authority.
Audited financial reports further indicated that the company recorded a loss of more than Sh3.9 billion in 2023, in addition to losses in previous years.
It was also disclosed that nearly 80 percent of the company’s revenue had been used to settle tax obligations, leaving the firm unable to sustain its operations or meet other financial commitments.
The court said the appointed liquidators will take control of all company assets, oversee the settlement of outstanding liabilities and submit a final report to the court once the liquidation process is completed.
