Over a year after retail chain Nakumatt collapsed, its former CEO Atul Shah is still a man under siege
The latest development is that his palatial Lavington house will be auctioned in August to recoup a KSh 2 billion loan he took for the retail chain
Nakumatt closed in January 2020, leaving in its wake unpaid debts of over KSh 30 billion
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Atul Shah, the former Chief Executive Officer of Nakumatt is set to lose his Lavington home to auctioneers on August 24. Former Chief Executive Officer of Nakumatt Atul Shah (l). A photo of the now-defunct Nakumatt supermarket (r). Photos: Getty Images/Nation. Source: Getty Images This is in lieu of the fact that Atul had guaranteed a KSh 2 billion loan taken by the now-defunct retail giant and which remains unpaid.
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As part of recouping the defaulted loan, the bank contracted Phillips International Auctioneers to sell his four-bedroom villa with a servants quarter.
The palatial home was used as collateral in 2011 for KSh 25 million, which forms part of the multi-billion shilling loans the retail giant took. “We are looking at KSh 30 million,” a representative from the auction company said, as reported by the Business Daily . Court records indicate that Atul’s property in Nairobi’s Industrial Area was auctioned earlier by Kenya Commercial Bank (KCB) at KSh 1.04 billion and bought by Furniture Palace International Ltd.
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The auction will leave a hideous blight on the reputation of a man who had earned honour and recognition as a business mogul.
His name had often appeared on the list of other influential African business figures like Aliko Dangote.Even as the 59-year-old continues battling the fall from grace, it will forever be remembered that Nakumatt grew from a mattress shop in Nakuru to a giant retail chain with 60 outlets spread across East Africa .A poorly executed expansion plan saw it crumble to the ground as it not only struggled to service loans but also defaulted on payments to creditors, suppliers, and landlords.Nakumatt finally closed its doors in January 2020, leaving in its wake unpaid debts […]
