Nakumatt Is Officially Dead, Funeral Arrangements Underway

On Tuesday Nakumatt creditors drove the last nail into the coffin when they voted unanimously to dissolve the Nakumatt and have all the assets sold. Nakumatt owes banks, suppliers, and landlords a whopping 38 billion shillings.

“An attempted turnaround of the business would be very costly and the company is likely to be lossmaking for the better part of the turnaround window, implying that such a turnaround would need to be financed by additional debt to sustain operations before achieving breakeven,” said the court-appointed administrator, Mr. Peter Kahi.

Creditors will now be paid from the cash that will be obtained after the assets are sold. The court is set to rule on the liquidation matter on January 17, 2020.

In 2017, Nakumatt had over 60 branches around the country. Less than a year later, the branches had dropped to 6. The six have already been sold to Naivas Supermarket at a cost of 422 million shillings.

Nakumatt, in its death, has blamed mismanagement from the top brass, theft of goods by employees and poor recordkeeping for its demise. Senior managers are likely to face trial over the disappearance of billions of shillings from the retailer.

READ: Nakumatt Mega Shuts Down In Kisumu As Employees Decry 3-Month Unpaid Salaries