Nakumatt supermarket in operation. [Photo/westsidemall.co.ke]
Nakumatt Supermarket has been serving several Kenyans for years. Its shops beuatified several urban centers.
However, few know the town of origin of this troubled shopping entity. The father to its Managing Director Atul Shah, the fourth child, started this venture in Nakuru.
The Shah family is still the majority shareholder in the crumbling business. What started in Nakuru several years ago has employed thousands of Kenyans but its recent woes is rendering many jobless.
Rigid management has been blamed for its downfall. Expansion did not go in line with managerial changes. Hiring of professionals to help in the management was only thought about this year after sensing a possible collapse.
Some professwionals blame the Shah family. They state that managing family owned businesses is a tricky affair.
"Investing in family businesses can be challenging ... past success blinds them to the fact there are certain roles that require professional management," said Ayisi Makatiani, managing partner at private equity firm Fanisi Capital as quoted by the Star.