Retailer's landlord in Nanyuki moves to shut branch over rent arrears.
At the point of closure, the outlet had a total of 42 workers on its payroll.
The move came as little surprise to residents following reports of similar closures across the country.
Nakumatt's Nanyuki branch has closed its doors to customers owing to non-payment of rent for its premises.
A notice pinned at the supermarket's entrance indicated that the closure was temporary and that it would be opened soon.
A worker who did not want to be named told the Business Daily that the landlord is demanding arrears amounting to Sh22 million.
The building housing the retailer is owned by Nanyuki Mall Limited.
The worker said that at the point of closure, the outlet had a total of 42 workers on its payroll with 52 others having resigned over the last few months due to non-payment of salaries.
“Most of my colleagues resigned after the working hours were reduced from 13 to 10 resulting to a 25 per cent salary reduction,” the worker said.
However, the remaining staff have continued to report to work since the closure was not initiated by the employer but by the landlord.
“We shall continue reporting to work every morning until our employer tell us otherwise,” the worker added.
The move came as little surprise to residents following reports of similar closures across the country and dwindling stocks at the Nanyuki branch.
Many of the shoppers who frequented Nakumatt, including locals and tourists, had shifted to the newly opened Cedar Mall located along the Nanyuki-Laikipia Air Base Road.
Debt-laden
Nakumatt is sinking under the weight of debts, estimated at between Sh30 billion and Sh40 billion, with 90 of its creditors having moved to court to have it wound up.
The retailer moved to court to have an administrator appointed to run its business in the hope of stalling creditors' attempts to liquidate the troubled company.
However, its creditors - including milk processor Brookside, Haco Industries and real estate firm Holden Investments - have opposed the move saying the firm's dissolution was the only way out.
Tuskys recently announced that it had began restocking the troubled firm's key outlets, a move sources say the Competition Authority of Kenya (CAK) is looking into as it could amount to collusion.
The restocking exercise, according to Tuskys CEO Dan Githua, comes ahead of a planned merger between the two industry rivals.
