Ex-Nakumatt CEO dwelling to be bought over stores money owed

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Corporations

Wednesday August 04 2021

atul shah

Outdated Nakumatt CEO Atul Shah. FILE PHOTO | NMG

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By BONFACE OTIENO

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Summary

  • The bank, via Phillips World Auctioneers, will promote the four-bed room villa with a servants quarter when the auctioneer’s hammer falls on August 24.
  • Mr Shah, as Nakumatt’s guarantor, had passe the property as extra security to supply comfort to the loads of bank loans.
  • KCB had earlier bought Mr Shah’s top property in Industrial Set aside aside, Nairobi, to Furnishings Palace World Ltd for Sh1.04 billion, court data sigh.

The aged chief govt of the fallen retail big Nakumatt, Atul Shah, will lose his Lavington dwelling to auctioneers this month after defaulting on a Sh2 billion KCB #ticker:KCB mortgage he had assured the grocery store.

The bank, via Phillips World Auctioneers, will promote the four-bed room villa with a servants quarter when the auctioneer’s hammer falls on August 24.

“We are able to market it via public public sale on August 24. We’re taking a peep at Sh30 million,” a advertising consultant from Phillips World Auctioneers advised the Industry Each day the day past.

Mr Shah, as Nakumatt’s guarantor, had passe the property as extra security to supply comfort to the loads of bank loans.

KCB had earlier bought Mr Shah’s top property in Industrial Set aside aside, Nairobi, to Furnishings Palace World Ltd for Sh1.04 billion, court data sigh.

The Lavington dwelling was once equipped as security in 2011 and accounted for Sh25 million in the multi-billion shilling loans.

The sale of the non-public property marks a brand unique low for Mr Shah, who for a long time occupied the nook location of job of the regional retail industrial.

This resulted in world institutions love Monetary Times to name the aged Nakumatt CEO as one of the crucial highest 50 influential businessmen on this planet, alongside Equity Monetary institution’s James Mwangi and Nigeria’s leading industrialist Aliko Dangote.

After the Nakumatt empire collapsed, the 59-year-extinct entrepreneur has most neatly-liked to support a ways from the media glare.

Nakumatt, which grew from a mattress store in a rural city to hold branches across Kenya and East Africa, was once forced to shut down closing year because it struggled to repay its suppliers, landlords and other creditors.

Banks owed billions of shillings by the collapsed retailer are fighting over Mr Shah’s non-public property to receive larger the unpaid loans.

Whereas the banks developed Nakumatt billions of shillings on the strength of the retail chain’s cash waft, Mr Shah also equipped his non-public properties as ensures for swift disbursements of the credit ranking.

Nakumatt closed store in January closing year with money owed estimated at Sh30 billion — including Sh18 billion to suppliers, Sh4 billion to industrial paper holders and the rest to banks, who are more aggressive in pursuing their unpaid loans.

Regulatory filings show hide that Nakumatt owed DTB Monetary institution Sh3.6 billion, Customary Chartered Sh900 million, KCB Sh1.9 billion, Monetary institution of Africa Sh328 million, UBA Sh126 million and GT Monetary institution Sh104 million.

Mr Shah says in court papers that some lenders equipped Nakumatt loans with an observe on his properties and that the banks were reluctant to pork up its rescue thought.

Collectors of the grocery store chain voted to wind it up after it didn’t repay money owed following a failed rescue strive.

After the vote, the banks started to name properties and bank accounts linked to Mr Shah, in particular originate air Kenya.

The local sources embody browsing department shops, location of job blocks and top land in Nairobi, Mombasa and Nakuru — where Atul’s father started Nakumatt as a retail store.

The properties are owned by third parties linked to the Shah family, which holds the massive majority of Nakumatt shares, basically based fully on a document ready by the retail chain’s court-appointed administrator.

The Directorate of Prison Investigations’ Anti-Banking Fraud Unit is also investigating Nakumatt for alleged theft and money laundering.

In its heyday, the firm, which started lifestyles as Nakuru Mattresses, had more than 60 outlets across Kenya, Uganda, Tanzania and Rwanda, sooner than it was once introduced down by unhappy administration and debt-fuelled fast growth.

Nonetheless its financial considerations resulted in empty shelves and retailer closures that by some means culminated in its death.

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