Munga Holdings Company Limited is seeking a court order to evict Nakumatt from Ridgeways mall in Nairobi citing financial losses and imminent collapse of the business.
The landlord has also sought an order declaring that the administrator of the retailer acted inappropriately by failing to agree to the repossession of premises.
Peter Obondo Kahi was appointed the administrator by the court on January 22, when the supermarket was notified of the penalty of license and leases.
According to the law, once the court has appointed an administrator, a landlord will not be able to exercise the penalty rights without the administrators’ consent or the court.
The plea to the court was that the supermarket has failed to pay any of the rental arrears both past and present. The court documents show that the supermarket had arrears worth 36 million shillings as of the 5th of March 2018.
The lease agreement signed by Nakumatt Holdings and Munga Holdings Limited has provision for rights of reentry should the agreement be breached, especially if it involves failure to pay rent.
According to Munga Holdings, it has suffered substantial financial losses and the impending collapse of its operations unless the court gives them the go-ahead to terminate the contract. The landlord says that they have been extremely inconvenienced and are faced with an economic hardship as a result of not being able to exercise its proprietary rights.