Reasons behind slow death of supermarket chain Nakumatt

Nakumatt Lifestyle

Customers shopping at Nakumatt Lifestyle, Nairobi, on December 23, 2015.

Photo credit: File

What you need to know:

  • For months now, Nakumatt, short for Nakuru Mattresses, has been tottering under the weight of mounting debts, estimated to be upwards of Sh15 billion.
  • While acknowledging the elephantine scale of his company’s troubles, Mr Shah then turned the tables by blaming the government for the current financial woes.
  • Mr Shah alleged the closure was forced by people who wanted to forcibly take over the family business.

A combination of factors including gross mismanagement, poor strategic decisions, tax issues and massive internal losses perpetrated by some wayward employees and suppliers are the main reasons behind the slow death of giant supermarket chain Nakumatt, multiple sources familiar with the retailer’s financial tribulations have told the Nation.

Welcome!

You're all set to enjoy unlimited Prime content.