Home News Nakumatt Saga: Banks to seize and attach CEO's properties

Nakumatt Saga: Banks to seize and attach CEO’s properties

If you ever shopped at Nakumatt Supermarkets, then you will agree with me that it was exceptionally good experience. The exemplary customer service and technology innovations made it stand out from the rest.

What brought the giant supermarket on its knees? Did it collapse due to genuine reasons, or did the directors play dirty games? Now the chickens are coming home to roost.

Nakumatt owes its suppliers and banks a total of Shs.38 billion. Apparently, the directors awarded themselves more than Sh.1 billion interest-free loans as disclosed by Parker Randall Eastern Africa, who was the chains, independent auditor.

The supermarkets’ creditors met on the 7th of January, 2019 and they voted unanimously to wind up the chain. They had an option of voting to liquidate or revive it, but they opted to have it liquidated so that they can recover their debts.

Among the creditors were several banks and they are now in the process of identifying all the properties owned by the CEO of the supermarkets Mr Atul Shah. These properties will be seized and sold to help in the recovery of the hefty amount of money that Nakumatt owes its creditors. The banks also intend to go after guarantors to ensure full recovery of their money.

Some of the affected banks include KCB, Bank of Africa, DTB, Stanchart, UBA and GT Bank.

Nakumatt had at least 60 branches and had spread its wings to Uganda, Tanzania and Rwanda.

Debts, poor management and over-expansion are the leading causes of its downfall.

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