Nakumatt’s plea to the High Court for the appointment of an administrator to run its affairs has been granted.
The High Court approved the retailer’s application to appoint PKF Consulting East Africa partner Peter Kahi as an administrator.
Kahi has over 25 years’ experience in conducting forensic and consultancy assignments. He previously worked for Ernst & Young as a partner and KPMG was a director.
Kahi has previously led teams in a number of forensic investigation and restructuring assignments, in countries such as Kenya, Uganda, Tanzania, Rwanda, South Sudan, Malawi and Somalia.
“It is hoped and expected that the administration order if properly executed, will be beneficial to all creditors. I therefore not choose to penalise or to reward any party through an order which would see one or another party pay costs to others,” High Court Judge Justice Ochieng ruled.
In October, the troubled retailer applied to the high court for an administration order in accordance with insolvency act.
The firm had proposed that Mr Peter Kahi of PKF Consulting Limited be appointed as an administrator and will perform his functions in the interests of Nakumatt’s creditors.
Nakumatt previously the leading retail store in Eastern Africa continues to undergo a severe cash crunch.
These have led to the closure of its flagship branches in the region due to accrued supplier debts that accumulated to Kshs 30 bn by 2017.
Tanzania (1), Uganda (3), Kenya (12) – Nakumatt Lifestyle, NextGen Mall, Westgate Mall, Nakumatt Junction, Ronald Ngala, Bamburi, Lungalunga, Thika Road Mall, Haile Selassie, Kisii (Moi Avenue), Kisumu Mega Plaza, Garden City Mall.