Nakumatt once had more than 60 outlets across East Africa and was on top of USD 700 Mn in annual revenue. Nevertheless, the supermarkets chain’s creditors voted to liquidate the business after series of revival strategies fell through. But, seemingly, its troubles are far from over.
Ever since Nakumatt’s foundering and Uchumi’s apparently limitless fight to remain on its feet, regulators started paying more attention to Kenya’s retail sector, since it attracts huge amounts of foreign investment . Atul Shah’s Arrest
Atul Shah—the former managing director and CEO of Nakumatt Holdings—appears to be in a legal predicament. An arrest warrant was issued against him for failing to appear in court to explain a part the retail enterprise’s financials.
Shah was summoned to explain why he shouldn’t be committed to civil jail—for up to six months—for not paying KES 74.4 Mn (USD 700,122) to Nakumatt’s former landlord at City Mall, Mombasa.
Officers in command of Parklands and Central Police Stations were directed by Environment and Land Court deputy registrar in Mombasa, Christine Ogweno, to execute the warrant. Suit papers shows that the businessman is expected to pay the owed amount in addition to interest and the lessor’s lost earnings.
According to the court, Shah, 59, was not able to explain how a case of insolvency against the retail firm is a reason to not allow the notice to show cause against his financial demeanor. Laundering
Though Shah claims to have filed an appeal which was admitted in December 2019 by the Supreme Court, the landlord—who owns Ideal Locations wherein Nakumatt once had shop—argues that’s no reason to bar him from paying the money because the execution was not suspended. Shah also, at the time, filed an application for stay of execution of the decree.
Nevertheless, Atul Shah’s financial troubles did not start today. Apart from Nakumatt owing more than KES 38 Bn (USD 357,589,500) to suppliers, commercial paper holders and banks, the Kenyan entrepreneur’s name has been linked to money laundering in the country. As of January 2020, several banks in the East African nation had consorted to investigate him to recovering billions in loan amounts defaulted.
Not just Shah, but also his son, Ankoor Shah, stand accused of accessing KES 1 Bn (USD 9,410,250) in interest-free loans in Nakumatt’s name when the once-was retail giant tried to stay afloat. According to reports, the amount was not returned to creditors. Shah is also accused of […]