A Nakumatt supermarket branch. [Photo/the-star.co.ke]
Finacial woes surrounding retail chain Nakumatt have deepened further after 19 landlords moved to court over rent arrears.
According to the 19 landlords, the chain owes Sh 596 million in rent arrears.
Kakamega-based Holden Investments (Holdent Mall), Green Square Limited (Green Square Mall) of Kericho, CK Patel Limited (Westside Mall, Nakuru), Parkside Developments Limited, High Park Investments and Highport Properties (Nairobi) have sued Nakumatt, seeking to terminate the retailer’s leases and take back the lettable space.
All the landlords have already joined the petition seeking to declare the retail chain insolvent.
Nakumatt, which has more than 60 branches across Kenya, Uganda, Tanzania and Rwanda, has rent arrears estimated at more than Sh1 billion.
High Park Investments (Highpark Towers, Highridge) and Highport Properties, which leased out godowns to Nakumatt, said the retailer had yet to confirm which branches will be affected by the planned shutdown.