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REVEALED: This Is How Nakumatt Went Down

With the financial muscle Nakumatt had controlled the retail market, it would not come to anyone’s understanding just how the company that was even listed in the Nairobi Stocks Exchange would go down, not to show signs of getting a life again.

The retailer’s chain was spread countrywide, even moving out to occupy the market in the East Africa region. The former giant in retail later was saturated in bin of debts, suppliers terminating their terms of business, in turn, creditors also showing them their back.

In 2018, a court came to the rescue of the retailer, cushioning it from creditors who were now on its neck due overlying debts, that had then hit a tune of Ksh. 30 billion, though suppliers would not loosen their stance, rendering the shelves in all the Nakumatt outlets empty.

Pwani Oil, for instance, had supplied fats and oil and bathing soaps but put the retailer’s accounts on hold due to unpaid invoices. That meant the retailer would not sell the essentials like oils and soaps. Pwani as not paid close to Ksh. 2 million.

It has come to notice that the dying of Nakumatt was occasioned by greedy and corrupt directors who milked the retailer dry of billions, setting off its predicament.

Thanks to an audit report, the directors had secured close to 1Ksh. billion in terms of soft loans, which were interest-free. The directors seem to have used the big “Nakumatt” name as security to borrow the loans, which were later directed to their personal accounts.

The Ksh. 1 billion is part of the cumulative Ksh. 2.8 billion the company lost in the midst of the looting by the directors. So far more than half of the total debts have been cleared, i.e Ksh. 1.5 billion already paid, with the company holding it will not be easy for them to clear the remaining 1.3 billion.

Read more: Has Ruto’s AMACO Insurance Gone Bankrupt?

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