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Retailer won’t recover Sh1bn invested in EAC expansion

Shoppers at a Nakumatt branch. FILE PHOTO | NMG
Shoppers at a Nakumatt branch. FILE PHOTO | NMG 

Nakumatt Supermarkets does not anticipate to recover a single shilling of the Sh1.1 billion the business invested in its regional expansion to Rwanda, Uganda and Tanzania.

The financially-troubled supermarket chain, through its administrator Peter Kahi, says that its Uganda business in under liquidation while the Tanzanian operation is under administration.

Nakumatt’s business in Rwanda, which seemed unaffected by the retailer’s financial misfortunes, is also loss-making despite being recently feted as a top taxpayer in the neighbouring country.

“On grounds of prudence none of these amounts would be recoverable according to management,” Mr Kahi says in a report that was presented to Nakumatt’s creditors on March 14.

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