Tanzania

Nakumatt suppliers in Tanzania seek State intervention over their dues -VIDEO

Police officers on guard as as goods belonging to Nakumatt’s  Nanyuki outlet are loaded into a lorry Tuesday morning. PHOTO | MWANGI NDIRANGU | NMG
Police officers on guard as as goods belonging to Nakumatt’s Nanyuki outlet are loaded into a lorry last year. Former Nakumatt suppliers in Tanzania are calling on their government to intervene. PHOTO | MWANGI NDIRANGU | NMG 

Dar es Salaam

Former suppliers of Nakumatt Supermarkets in Tanzania are calling on their government to intervene and ensure they are paid their dues, amounting to TSh4.7 billion (Sh210 million), following the retail chain's receivership status.

The supermarket went into receivership last month.

The chairman of both Nakumatt and Uchumi suppliers’ union in Tanzania, Mr Joseph Mlay, told The Citizen that a team visited the supermarket headquarters in Kenya to have talks with the management on how they would be paid.

However, he said the management declined to talk to them on grounds that they were in receivership since January 22.

"The management declined to talk to us because they have been put under receivership and therefore cannot make any decisions," he said.

Made to pay

In view of the development, he called on the government to intervene and find out how the owner of the supermarket could be made to pay the money owed.

In another development, Mr Mlay said they recently had talks with Uchumi Supermarket management and agreed that they would be coming to Tanzania within 30 days for verification and putting up a payment plan.

He said so far, 224 names have been verified and another 59 names are still undergoing the process.

"We hope the agreement we entered on January 31, this year, will be honoured and they will come to complete the payment process," he said.

Seeking audience

He said since Uchumi closed shop in 2015, the suppliers have been seeking audience with them to pay their arrears of TSh8.6 billion (Sh383 million).

The Kenyan government, which has a 14 per cent stake in the retail chain, had agreed to pay the money, he said.

In total, the suppliers are owed by both Nakumatt and Uchumi supermarkets TSh13 billion (Sh580 million).