Bank of Africa Wins Battle to Auction Former Nakumatt CEO’s Sh2bn Property

The Bank of Africa scored a big win on Tuesday after the High Court allowed the lender to auction former Nakumatt CEO Atul Shah’s property worth Sh2 billion to recover loans advanced to the now-defunct retailer. The Business Daily reported on Wednesday.

In January, Mr. Shah had claimed that he was not in a position to pay Nakumatt’s creditors and suppliers who watched helplessly as the retailer collapsed with some Ksh30 billion owed to them stating that he was financially distressed.

Fast forward to now, BoA becomes the first lender to seize Mr. Shah’s property while other creditors are still baying for his blood.

The High Court gave Bank of Africa the nod to auction the property, registered under the name of Collogne Investments on August 24 to recover Sh700 million advanced to the collapsed retail chain. Collogne Investments is owned by Mr. Shah.

Various creditors have stepped up attempts to recover money owed to them and are targeting assets worth Ksh3.68 billion linked to Mr Shah and his family targeted for seizure.

Justice Mary Kasango dismissed an application by Collogne Investments to stop the auction by BoA. Collogne Investments argued that the property was used as security for other loans and that it would lose office space if the auction were allowed to proceed.

The company told the court the forced sale of the office block in Nairobi’s Industrial Area will expose it to legal suits from third parties who have rented space in the property.

Nakumatt owes Diamond Trust Bank (Ksh3.6 billion), Kenya Commercial Bank (Ksh1.9 billion), Standard Chartered (Ksh900 million), Bank of Africa (Ksh328 million), United Bank of Africa (Ksh126 million) and GT Bank (Ksh104 million), according to a document shared by the collapsed retailer’s administrator Peter Kahi.

“Bearing what is before me I am of the view that the plaintiff has failed to demonstrate that its appeal is not frivolous and I do find that the defendant bank stands to suffer greater hardship if an injunction is granted since the debt is not being serviced,” Justice Mary Kasango said.

BoA in its submissions had argued that the auction is not illegal since Nakumatt was an unlimited company.

Nakumatt was folded up on January 7 after creditors voted to dissolve it and share the proceeds from the sale of the retailer’s assets after attempts to resuscitate the retailer flopped.

However, the lenders are still pursuing properties and bank accounts linked to Mr. Shah, especially outside Kenya, to recover the billions lent out to the collapsed retailer.

See Also>>>> Ex Nakumatt CEO’s Financial Woes Pile as Rwandan Bank Comes Calling for Loan Recovery

Latest

In Race for African Leadership Award, Ruto Faces Tough Opposition

Among the contenders of the prestigious African of the Year award is Kenya’s President William Ruto, who will be battling it out with President Hakainde Hichilema of Zambia and Prof. Benedict Okey Oramah, President of Afrexim Bank.

Transforming Financial Inclusion: The Impact of M-Pesa in Kenya and Beyond 

Discover the profound impact of M-Pesa on financial inclusion in Kenya and beyond. Explore how this innovative mobile service revolutionizes transactions and shapes the future of finance globally.

All You Need To Know About Vaping

Vaping, the act of inhaling vapour produced by an...

A Look at New Generation Ford Vehicle Models Trending in Kenya

The new partnership between Ford and Caetano offers the brand an opportunity to gain market share in Kenya by leveraging on Caetano’s extensive network and experience.

Follow Us

Newsletter

Don't miss

Safaricom To Power Tusker OktobaFest Beer Festival

Safaricom’s involvement in OktobaFest as a technology and payments partner will focus on fostering seamless in-festival connectivity, empowering the youth and Gen Z community through Safaricom Hook, and powering digital payments through M-PESA.

Music Producers Launch Organization To Streamline Recording Industry

Recording Industry of Kenya (RIKE) was launched on 9th October 2023. Registered in 2022 as a not-for-profit organization, RIKE aims to promote the collective interests of producers of sound recordings in the country.

Nairobi’s Hero Bar Listed Among World’s 50 Best Bars

World Best Bars: Hero Bar in Nairobi continues to climb the list, moving up six places to No.62 and Johannesburg’s Sin + Tax comes in at No.94. Dubai new entry Ergo is at No.69 and Melbourne’s Byrdi has re-entered the list at No.61.

Kenyan DJs Face Off In Smirnoff Battle Of The Beats Season 3

The Smirnoff Battle of the Beats Season 3, a DJ competition, is poised to unleash an unprecedented musical frenzy countrywide.

The Highs And Lows Of Betty Kyallo, Sisters Show As Season 2 Ends

Kyallo Kulture has always been, above all, about sisterhood, and in Season 2 we have witnessed the charm of it - the ups that gave us wholesome moments as the sisters led by Betty Kyallo spent time together.

DStv Beats CNN, BBC To Become Most Admired Media Outlet In Africa

DStv, MultiChoice Group’s leading broadcast service, has been named...

MultiChoice Revises Subscription Fees For DStv, GOtv

MultiChoice has announced price adjustments on some of their...

Octopizzo: How I Make My Money

"I've been doing this for 12, 13 years. It reaches a point where you no longer need to prove that you can make a hit record," he stated.

New Spotify EQUAL Artist Qing Madi Talks Music and Dreams

Heavily influenced by her cultural background and the lyrical arrangements of Kendrick Lamar, the versatile Nigerian prodigy is shaping the future of music with her unique genre-bending fusion of Afrobeats, Pop, Soul and R&B.

Bob Collymore Immortalized in New Festival

The late Collymore was famous for his love for jazz and even initiated the Safaricom Jazz Festival, which saw several of the world's biggest Jazz artists perform in Nairobi.
BT Reporter
BT Reporterhttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke

In Race for African Leadership Award, Ruto Faces Tough Opposition

Among the contenders of the prestigious African of the Year award is Kenya’s President William Ruto, who will be battling it out with President Hakainde Hichilema of Zambia and Prof. Benedict Okey Oramah, President of Afrexim Bank.

Transforming Financial Inclusion: The Impact of M-Pesa in Kenya and Beyond 

Discover the profound impact of M-Pesa on financial inclusion in Kenya and beyond. Explore how this innovative mobile service revolutionizes transactions and shapes the future of finance globally.

All You Need To Know About Vaping

Vaping, the act of inhaling vapour produced by an electronic cigarette or similar device, has a relatively short history compared to traditional tobacco smoking. The...

LEAVE A REPLY

Please enter your comment!
Please enter your name here