14 landlords reject Nakumatt Supermarket as a tenant


Iseme, Kamau and Maema Advocates, who represent Nakumatt, are seeking to withdraw on grounds that ...
[PHOTO | FILE]

In Summary

  • The owners of 14 buildings that host Nakumatt branches across the country now say they do not wish to continue with the troubled retail supermarket as a tenant.
  • In a statement to newsrooms, the landlords have also rejected the recovery proposals advanced by the administrator of the financially strained supermarket, Peter Kahi.
  • The landlords have further stated that they built their outlets on borrowed funds and are now at risk of having their properties seized by banks.

The owners of 14 buildings that host Nakumatt branches across the country now say they do not wish to continue with the troubled retail supermarket as a tenant.

In a statement to newsrooms, the landlords have also rejected the recovery proposals advanced by the administrator of the financially strained supermarket, Mr. Peter Kahi.

“The 14 landlords for Galleria, Nyali, Likoni, Karen, Crossroads, Nakuru, Eldoret Household, Cinemax, Nanyuki, Highridge, City Hall, Diani, Malindi, Meru, and Highport (Warehouses) hereby wish to state that they do not wish to continue with Nakumatt as a tenant and do not support the proposals for recovery advanced by the Administrator, Mr. Peter Kahi,” reads the letter.

This comes barely a week after Nakumatt supermarket was forcefully kicked out of the Hazina trade centre in Nairobi by auctioneers despite being placed under administration.

The landlords have further stated that they built their outlets on borrowed funds and are now at risk of having their properties seized by banks.

“Several of us landlords developed our outlets on borrowed funds and we now stand at risk of having our properties seized by banks following Nakumatt’s massive default,” reads the statement.

A meeting held with Mr. Kahi on March 14 ended prematurely after suppliers and creditors rejected a plan to convert 75% of Nakumatt’s debt into equity and accept a waiver for the remaining 25%.

The landlords have continued to count their losses as the administration bars them from forcefully evicting the troubled retailer up till when the court will rule so.

Nakumatt has a debt amounting to over Ksh.35 billion against the Ksh.5 billion that could be raised following its liquidation.

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Story By Mumbi Warui
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