Peter Kahi seeks 6 months extension to Nakumatt administration term


Peter Kahi seeks 6 months extension to Nakumatt administration term
Parker Randall East Africa Patner Peter Kahi PHOTO | COURTESY

In Summary

  • The request revealed in court on Monday has seen the postponement of a ruling on the fate of collapsed Nakumatt to March 26 with the administrator’s counsel having failed to prove the dispatch of the proposal to all parties to the matter.
  • On January 21, the court had extended the mandate of Kahi to March 9 allowing the administrator to expedite wind-up procedures.
  • The majority of the creditors are set to walk away empty handed with the present real recoveries standing at a mere Ksh.422 million against an estimated Ksh.38 billion stock of debt.
 

Parker Randall East Africa (PKF) partner Peter Kahi has sought for a six months extension to his administrator term at grounded Nakumatt.

The request revealed in court on Monday has seen the postponement of a ruling on the ultimate fate of collapsed Nakumatt to March 26 with the administrator’s legal counsel having failed to prove the dispatch of the proposal to all parties to the matter.

High Court judge Mary Kasango had been expected to make a ruling on the administrator’s term including the endorsement of Nakumatt’s liquidation.

On January 21, the court had extended the mandate of Kahi to March 9 allowing the administrator to expedite wind-up procedures.

Nakumatt creditors including landlords, suppliers and banks overwhelmingly voted to liquidate the retailer on January 7 marking the end of the road for the 33-year old retailer after an audit by PKF revealed the grave trade of the once thriving store.

Peter Kahi had himself endorsed the wind-up proposal indicating high costs to a potential business turnaround plan to include additional debt taking.

PKF was appointed as the retailer’s administrator in January 2018 by the same court and has since earned fees in excess of Ksh.30 million in administration fees.

The charges factor in among other priority payments in ongoing wind-up procedures.

The majority of the creditors are set to walk away empty handed with the present real recoveries standing at a mere Ksh.422 million against an estimated Ksh.38 billion stock of debt.

Nakumatt’s outstanding arrears are estimated at Ksh.18 billion and Ksh.20 billion to its suppliers and other trade creditors respectively.

PKF’s recent independent audit has unearthed rot in the downtrodden retailer including unsecured insider loans to company directors, undocumented stock write-offs and inconsistent opening balances.

Peter Kahi has held previous ongoing and completed administration roles including Deacons and Ukwala.

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Story By Kepha Muiruri
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