Former Kilome MP Harun Mwau. [Photo/the-star.co.ke]
It has now emerged that woes facing retail chain Nakumatt trace back to last year following the exit of former Kilome MP Harun Mwau.
This is according to newly filed court documents by Edward Waithaka who is the director of the Nanyuki Mall.
According to Waithaka, Nakumatt chief executive Atul Shah may have used its working capital to buy Mwau’s shares.
He said the move resulted into the near liquidation of the retailer.
Mr Waithaka says Mr Shah blamed delays in rent payments on Nakumatt’s liquidity problems that deepened after the retailer allocated a substantial amount of funds to buying out Mr Mwau.
Mr Mwau had until last year held a 7.7 per cent stake in Nakumatt through Hotnet Limited.
The retailer’s books always remained a closely guarded secret but Mr Shah in 2015 claimed that Nakumatt was worth Sh40.7 billion.
Mr Mwau’s exit gave the Shah family full of the retailer.