Nakumatt's Liquidation Deadline Extended To February 2021

Nakumatt’s Liquidation Deadline Extended To February 2021

By Juma / Published November 10, 2020 | 10:49 am

The High Court in Kenya has extended the liquidation of defunct Nakumatt Holdings Limited (NHL) to February 10, 2021 meaning creditors will have to wait for longer before knowing whether the sale of the company will give them something for their troubles.

The liquidation extension request was made by the Parker Randall administrator who cited a lengthy wind-up process that has also been delayed by COVID-19 disruptions. January, 92 percent of Nakumatt creditors voted to wind down.

Nakumatt creditors are owed 38 billion and the administrators will share about 422 million shillings received from the sale of six Nakumatt branches to Naivas. Creditors are scared that the sale might not yield the cash they need to settle the debts.

Nakumatt Supermarket was once a giant in the retail sector, spreading the wings all across East Africa in Kenya, Uganda, and Tanzania. The management has been blamed for engineering the fall of the once vibrant retailer by stealing cash from the company.

Diamond Trust Bank (DTB) needs 3.6 billion shillings from Nakumatt, KCB Group needs 1.9 billion shillings, Bank of Africa is waiting for 328 million shillings, UBA 126 million shillings, and Guaranty Trust Bank 104 million shillings.

Brookside Dairy Limited needs 457 million shillings from the dead retailer, Outstand Logistics Limited 415 million shillings, Norkan Investments 338 million shillings, New KCC 290 million, and Redstar International 261 million shillings.

Nakumatt Holdings Limited (Under Administration) is a family-owned business that was established in 1987. Until February 2017 NHL had 60 branches across the region (44 in Kenya, 8 in Uganda, 5 Tanzania, and 3 in Rwanda).

Kenya has been described as a graveyard of supermarkets with giants such Nakumatt, Uchumi, and Tuskys collapsing right before our eyes. Tuskys is the recent casualty, having shut down most of its branches and firing over 4000 employees. Just like Nakumatt, Tuskys is also a family business and family feds have been blamed for its collapse.

READ: The Demise Of Tuskys: The Quick Death Unfolding Before Our Eyes

About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

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