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Parliament summons Nakumatt after snub

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Nakumatt was forced to shut more than a dozen outlets last year. FILE PHOTO | NMG

Parliament has issued summons to the management of troubled supermarket Nakumatt Holdings Ltd after it snubbed an invitation to explain why it dismissed workers without paying their salaries since July 22, 2017.

The National Assembly’s Labour and Social Welfare Committee took the decision after listening to 17 employees who complained over non-remittance of salaries, pension contributions and statutory deductions since 2016.

Nakumatt was put under management after the supermarket chain went under following huge debts.

In August 2017, the employees moved to court accusing Nakumatt of delaying their salaries, failure to pay them for overtime work as well as non-implementation of the 11 per cent salary increment agreed to in a collective bargaining agreement.

Ali Wario, who chairs the committee, said MPs expected Nakumatt’s managers to appear before it Tuesday but they failed to do so.

“We have heard you loud and clear. We invited the management of Nakumatt but I am informed that they are not coming. We will summon Nakumatt for the second time and if they don’t come, we will invoke our powers under the Constitution,” Mr Wario said after listening to submissions from representatives of the employees led by Christopher Beneti.

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The workers had urged the House to intervene and get their dues paid.

“We the employees of Nakumatt… request for a scheduled meeting to express our grievances for having been dismissed without payment,” they said.

Management is expected to settle debts estimated at more than Sh30 billion and revive the business which has 20 branches, down from 62 at its peak.

When the store sought protection in October, the firm had 4,000 staff but it has closed most outlets since.

Nakumatt was forced to shut more than a dozen outlets last year as it struggled to repay its suppliers, landlords and other creditors.

It has been evicted from a number of properties over rent arrears.