Troubled retail chain Nakumatt has secured a court order barring the owners of the mall that hosts its Nakumatt Mega store on Uhuru Highway in Nairobi from attaching its assets to recover Sh23 million in rent arrears.
Lady Justice Olga Sewe issued the order yesterday after Nakumatt challenged the planned auction of its assets, arguing that the move is illegal as the retail chain is already facing two separate insolvency petitions.
Under Kenyan law, assets owned by individuals and firms facing insolvency proceedings in court are protected from attachment.
The move by Integer Limited, which owns the mall that houses Nakumatt Mega, comes barely two months after the owners of Thika Road Mall attempted to attach the retail chain’s assets to recover Sh51 million in rent arrears.
Justice Sewe’s orders came as Nakumatt and Interger revealed that they are holding out of court talks to resolve the standoff.
“The intended attachment of Nakumatt Holdings Limited’s goods be and is hereby stayed pending the outcome of negotiations on settlement between the parties,” she ordered.
Two other firms — Africa Cotton Industries and Gold Crown Beverages — have instituted separate insolvency petitions against the struggling retail chain.
African Cotton Industries Limited, the manufacturer of popular tissue paper and sanitary towel brands such as Tena, Flora and Medicott, is demanding Sh70 million to cater for goods supplied to Nakumatt.
Gold Crown Beverages, which processes Kericho Gold, Baraka Chai and London Fruit and Herb brands of tea, on its part wants the payment of a Sh60 million debt accruing from supplies to Nakumatt. (Copyright: Business Daily)
Former TV presenter Louis Otieno goes deaf
The only way his hearing can be fixed is by having a procedure undertaken in India called Cochlear implant
Five surprising causes of hearing loss
The number-one cause of deafness is probably quite an obvious one: age. Most people’s hearing begins to decline from 30...
Blind couple celebrates their love in style
As the world marked Valentine’s Day on Wednesday, visually challenged Joseph Mwaniki decided to surprise his blind wife of 27...
Aboud Rogo’s widow jailed for 10 years
Haniya Said was found guilty of conspiracy for supporting an attack in which three women fire-bombed the port city's main police...
Kenya says open to more insurance investors
Kenya has a population of 45 million people, according to Kenya National Bureau of Statistics and the government says it...
Quit if you can’t deliver, Uhuru tells new Cabinet
President said he expected his new Cabinet to help in the achievement of the Big Four Agenda that will transform...
Jubilee MP Alfred Keter arrested for Sh633m fraud
Recently, he was among the four Jubilee legislators kicked out of house committees for defying a State House order on...
I stopped Kalonzo from taking oath, churchman says
Arch Timothy Ndambuki says together with 19 clerics from the county they met Kalonzo prevailed upon him to keep off...
High Court revokes Miguna’s deportation
Justice Luka Kimaru directed the government to deposit Dr Miguna’s revoked passport at the court within seven days
Where patients give witchdoctors first priority
Professional diagnosis by doctors in hospitals is sought as a last resort after the traditional healers have failed