Nakumatt woes worsen as Nanyuki branch closes


Nakumatt woes worsen as Nanyuki branch closes

Troubled Nakumatt Supermarket ushered the New Year with yet another closure after its Nanyuki branch was closed down Tuesday over Sh22m rent arrears.

The cash-strapped retail shop on Tuesday vacated the building, packed its remaining products and moved them to an unknown destination.

The workers said by the time of the closure, there were 42 workers who were yet to receive their six months’ salaries with 52 others having resigned in the last few months over non-payment of salaries.

Nakumatt has, however, been reluctant to vacate most of its premises especially after it moved to court in November seeking an injunction to bar landlords from evicting the supermarket from their premises.

The retailer attributed part of its problems to the year-old Banking Amendment Act 2016 which put a cap on interest rates.

Proprietor and CEO Atul Shah said the law had severely affected the supermarket’s ability to access short to medium-term financing that it relied upon to meet its obligations to creditors.

Nakumatt emphasized on the necessity for it to re-negotiate fresh terms with financial institutions owing to the “unforeseen circumstances”.

For Citizen TV updates
Join @citizentvke Telegram channel



Video Of The Day: CBK\'s guidelines on how to return 1000 notes

Avatar
Story By Wanjiku Wanjiru
More by this author