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Landlord wants Nakumatt to vacate Likoni premises over rent arrears

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Police officers on guard as as goods belonging to Nakumatt’s Nanyuki outlet are loaded into a lorry last year. PHOTO | MWANGI NDIRANGU | NMG

Nakumatt troubles still persist after its landlord in Likoni branch sued it seeking an order to pay Sh59.7 million in outstanding rent and service charge as at November 14, 2017.

Nova Holdings Ltd also want Nakumatt Holdings Ltd, the parent company of the supermarket chain, ordered to immediately vacate the premises and in any event, not later than three days when the order is issued.

Through lawyer Willis Oluga, the landlord wants a declaration that Nakumatt Holdings Ltd is in breach of the lease agreement dated March 20, 2014.

Mr Oluga argues that Nakumatt has on numerous occasions deliberately failed and defaulted to pay rent and service charge when it falls due as agreed.

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He further argues that as per the agreement, if the defendant fails to pay rent within seven days from the due date, if a petition is presented for the winding up or is deemed unable to pay its debts among others, the plaintiff has the right to forfeit the lease and repossess the premises.

“All the events have occurred hence the defendant has breached the lease agreement and continues with such breach,” Mr Oluga argues in the petition.

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Pursued merger

According to the plaintiff, Nakumatt has materially changed the nature or mode of conduct of its trading by entering into or pursuing a merger with Tuskys Ltd.

Nova Holdings further says that several creditors have threatened to sell, dispose of the assets, property or revenue of the defendant in order to recover monies owed.

“As a result of the breaches, the plaintiff’s right to forfeit the lease and to take possession of the suit premises has accrued and the plaintiff’s seeks repossession,” the suit papers read.

Nova further argues that it took a loan of Sh44.8 million from Bank of India, which was to be serviced through the rent received from Nakumatt.

“The default by the defendant to pay rent has in turn led to the plaintiff to default in servicing the loan.”

Nova Holdings Ltd claims Nakumatt kept on making promises that it was going to pay the outstanding rent, which turned out to be empty.

Nova further argues that based on Nakumatt's numerous undertakings that it was going to pay the outstanding rent, it obtained a loan Sh20 million from Prime Bank Ltd on the understanding that it would use the rent received from the defendant to repay the loan.

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Two loans

Nova Holdings Ltd says that due to non-payment of the rent by Nakumatt, it has defaulted in repaying the two loans from the Bank of India and Prime Bank Ltd.

“The defendant should vacate the premises to enable the plaintiff lease out the same to another tenant who is willing and capable of making regular rent payments which the plaintiff has found,” the suit papers further state.

Nova further argue that if it is not permitted to repossess the premises, it will lose it to lenders as there is a likelihood they will sell the property to recover the loan.