Nakumatt fights Nyali eviction

Struggling retailer Nakumatt is seeking to fight its recent eviction from its prime Mombasa location citing breach of an administration order issued in January.

According to the retailer, the order gives safeguards such as protection against external interference or recovery action by any creditor during the term of the administration.

On Wednesday, Nakumatt was kicked out of its City Mall branch in Nyali, Mombasa County with the landlord claiming rent arrears of Sh27.8 million.

Nakumatt administrator Peter Kahi said the firm would be moving to recover Sh300 million from Ideal Locations, who own the mall, for destruction of property following the eviction.

“I shall be swiftly moving to surcharge and affect the recovery of destroyed goods and property earlier housed at Nyali City Mall and valued at more than Sh300 million,” Mr Kahi said in a statement.

Ideal Locations obtained a court order on Monday granting it authority to evict Nakumatt from the premises.

Shortly after the eviction, most of the goods in the store were either destroyed or looted as Nakumatt officials watched helplessly.

Nakumatt has been under heavy financial strain since 2016, with debt estimated at Sh40 billion.

Mr Kahi has called a meeting with all creditors slated for March 14 to present a recovery plan.

The administrator has however cautioned other creditors against taking any action on Nakumatt while the administration order is still in effect.

“All creditors are therefore notified and warned that they will be held responsible for damages and contempt of court for any action taken in the clear knowledge of the matters explained,” he said.