Ex-Nakumatt staff start new life with own Kisumu supermarket

When trouble started at former giant retailer Nakumatt, many people were affected. Many people lost jobs.

But amid the turbulence, seven former employees from the supermarket’s branches in Kisumu saw an opportunity.

They did not count their losses or lament. They resigned, pooled resources and decided to establish a supermarket in the region.

The seven, who are directors of their new outfit, were Nakumatt managers in Kisumu, Kisii and TRM.

Isaiah Abidha,  Stephen Ogutu, Ezekiel Masangila, Philip Ligalaba,  Benson Olang’, Nicodemus Odeny Nyaure and Mr Manasseh Odhiambo.
Mr Odhiambo was the branch manager of Nakumatt Nyanza while Mr Olang’ was Nakumatt Mega City boss.

Between November and December last year, the group of seven registered Lemigo Holdings limited, now the parent of ‘Lemigo Dala Supermarket’ on Kondele/Kibos Road in Kisumu.

‘Lemigo’ is the acronym formed out of the initials of their names. It’s not a new idea, though, they say. It was born in 2010 when Nakumatt still ruled the charts in the retail segment.

“It was conceptualised over the years and actualised last year,” says Mr Olang’.

To start the journey, they have invested about Sh20 million in the retailer whose slogan is the ‘Home of Dignity, Value and Service’.

A sea split into two is the logo, mimicking how Biblical Moses led Israelites to cross the Red Sea.

God is leading them in the direction of a new business, they explain the image.

“We have been employees of Nakumatt for more than 20 years. All our lives we have been in supermarkets and that is why when we thought of an investment, we chose a supermarket because it is what we understand best,” said Mr Olang’.

They were employed as line attendants and shop assistants but grew through the ranks to become tellers, cash handlers, worked in procurement, and later to branches as managers.

Although Nakumatt is passing difficult times leading to branch closures, the freshly minted investors remember the retailer as a good trainer that exposed them to industry best practice.

“The company used to bring experts both local and international to train us in various aspects of the industry and market. This helped us to understand concepts that we have applied now while establishing ours,” said Mr Olang’.

The team has, so far, employed 20 people. “We have employed locals and some of our former colleagues who have lost their jobs, because of the troubles Nakumatt has been having,” said Mr Olang’.

Although Kondele, the site of the new supermarket, has been referred to as hotspot of political violence, it, nonetheless, attracts various investments especially retail stores and banks, owing to its rising population.

According to another director, Mr Odhiambo, Kondele’s selling point was population and the traffic in the area that offers a ready market.

“Kondele is the only place with 24-hour economy and currently hosts three supermarkets. This gives it a vote of confidence as a hub of business,” said Mr Odhiambo.

Area MCA Joachim Oketch said the area was quickly turning into a hotbed of opportunities an investment as opposed to its tainted violence image.

“We are proud of these people because it is a noble idea conceived by our own people. This has made Kondele ripe for investment,” said Mr Oketch. Kondele has turned into a hub of business with hotels, and social joints, making it alive throughout the day and night.

READ: Atul Shah: How debt took down my Nakumatt empire

The proprietors are alive to some of the challenges in the new business, with Mr Olang’ pointing out that operation cost is a major issue that they have witnessed in their decades of experience.

Location is a big issue, explains Mr Olang’, citing space and rent. However, he points out that the county government made it easier for them to acquire licences and that they are receiving goodwill from other local leaders.

“The business is capital-intensive and we are aware that the operation cost is also high. We plan to manage by working closely with local suppliers,” he said.

The directors are asking suppliers to liaise with them but insist on the goods meet the Kenya Bureau of Standards requirements.

The supermarket will be opening its doors officially on January 26 (this Friday), but Mr Olang’ said the date could change depending on the availability of guests they have invited to grace the occasion.

“We are doing fittings and getting ready the stock to beat the deadline,” he said.

Lemigo has hinted at plans of opening more branches in Kisumu’s Central Business District as well as expand beyond the county.

Apart from the local competition in Kondele, the new outfit faces fierce competition from established players like Tuskys, Choppies, Tumaini and Khetia’s.