Nakumatt enters talks with NSSF over stalled Hazina Trade Centre

Nakumatt Supermarkets has entered into negotiations with the State pension fund NSSF in a bid to re-start the stalled construction of the Hazina Trade Centre.

A protracted court dispute between the retail chain and the National Social Security Fund (NSSF) has delayed construction of what is billed to be Nairobi’s tallest building on completion.

The supermarket chain moved to court two years ago seeking to block the building of additional floors above its Nakumatt Lifestyle Branch on grounds that the construction was disrupting its business.

The NSSF hired Chinese construction company China Jiangxi to finish building the 39-storey building, which already had eight floors including the four that house Nakumatt.

The planned Hazina Trade Centre, at 39 stories is expected to be Nairobi’s tallest skyscraper.

“It is true that Nakumatt Holdings has opened talks with NSSF over the contentious developments at Hazina Trade Centre,” Nakumatt Holdings said in a statement.

The retailer maintained, however, that the negotiations would run parallel to its ongoing suit against the NSSF pending a potential “fruitful” resolution.

“We are also engaged in a commercial litigation process and remain optimistic that the ongoing talks will allow us to reach a mutually agreeable position,” said the retailer.

NSSF communications manager Christopher Khisa did not respond to our queries on the matter by the time of going to press as promised.
In September 2014, Nakumatt obtained temporary orders against NSSF stopping construction of the tower.

READ: Nakumatt blames NSSF for Sh1.6bn loss at Lifestyle

In its suit against NSSF, the retail chain had asked the court to block construction of the Sh6.7 billion tower until after 2023, when its lease expires.

Nakumatt claims it has a 20-year lease agreement with NSSF from 2003 to carry its supermarket business from the ground, 1st and 2nd mezzanine floors of the building.

The supermarket has, however, argued that the contractor is interfering with its business by dumping building material waste, installing machinery and cranes, and causing what it calls “unprecedented nuisance” to its staff and shoppers.

The chain has also argued that the contractor has blocked entrances by scaffolding the entire premises, interfering with human and motor vehicle traffic.

“There has been reduced number of shoppers, reduced parking space and customers. There are serious traffic jams on Koinange Street and Loita Street that spills over to University Way.

Security at the site is poorly managed and Nakumatt has no control. We risk outbreaks of communicable diseases,” the retailer had earlier claimed.

As at 2014 the construction had cost it Sh1.62 billion in lost business, the chain’s managing director Atul Shah had also claimed, arguing that the number of shoppers had dropped by 37 per cent, causing it huge loss and damages.