The mess facing troubled retailer Nakumatt has been unearthed. According to reports, the supermarket chain is currently facing debts of up to Sh. 30 billion
This is Sh. 15 billion more than what has been quoted in the public.
The shocking revelations have cast doubt on the recovery of the retailer that is currently unable to pay its employees or remit statutory deductions.
According to reports, Nakumatt owes suppliers Sh. 15 billion. 10 commercial banks are also on its neck, seeking to recover Sh. 8 billion. The supermarket has also soaked in an additional debt to the tune of Sh. 7 billion in commercial paper.
The lenders owed money by the retailer are Standard Chartered Bank, Kenya Commercial Bank, Stanbic Bank, NIC Bank, Barclays Bank and Diamond Trust Bank, Bank of Africa, Oriental Bank, Habib Bank and Guarantee Trust Bank.
Last week, it was revealed that Nakumatt’s assets had been auctioned over rent arrears at its Thika Road Mall.
Suppliers like Unilever that stock fast-moving consumer goods like Omo, Lifebuoy, Rexona, Blue Band and Knorr beef cubes have suspended supplies to Nakumatt.
East African Breweries has also reportedly walked away from Nakumatt. To add insult to injury, African Cotton Industries Ltd, the manufacturer of popular tissue paper and sanitary towel brands such as Tena, Flora and Medicott, has lodged an insolvency petition against Nakumatt over a Sh70 million debt.
Nakumatt also owes Regent Agencies Sh3 million in rent arrears for Nakumatt City Hall and recently had a tiff with one of its Ugandan branch tenants at Katwe over rent arrears.
Knight Frank Uganda, the property manager of the Acacia Mall, Village Mall and Victoria Mall where the retailer also had branches recently announced the closure of the outlets over what is believed to be non-payment of rent.
