Standard Chartered Bank Kenya has warned that it will begin selling off land tied to the failed supermarket chain Nakumatt unless the company’s investment arm pays back a huge debt.
In a statutory notice published on March 5, 2026, the bank said Nakumatt Investments Limited must settle the outstanding balance within 90 days, or it will move to force the sale of several properties that were offered as security for loans.
“Nakumatt Investments Limited is required to rectify the default by paying the secured amounts within ninety days of the date of publication of this notice,” the lender said.
Adding;
“If the amounts are not paid within the stipulated period, Standard Chartered Bank Kenya Limited will proceed to exercise its remedies under the charges and the Land Act, including selling the charged properties.”
The warning affects four pieces of land in Mombasa, Nakuru and Nairobi. Among them is parcel MN/I/9626 in Mombasa, Block 9/47 in Nakuru Municipality, and two Nairobi plots listed as LR 209/4063 and LR 209/4058. These plots were handed over as collateral when loans were taken between 2011 and 2012.
Court papers show that the supermarket group’s total debt to Standard Chartered exceeds Sh1.6 billion. This includes an overdraft of about USD 331,000, term loans of nearly USD 7 million, and roughly Sh967 million in import financing that was never repaid.
Lenders won the right to pursue the properties after the Nairobi High Court upheld Standard Chartered’s ability to enforce the security in a ruling on November 10, 2025. The decision cleared legal hurdles that had delayed asset recovery for months.
Nakumatt was once a dominant retailer in East Africa, with more than 60 stores across Kenya, Uganda, Tanzania and Rwanda. At its height, the chain was known for modern supermarkets and wide product ranges, pulling in billions in annual sales.
Nakumatt’s financial troubles
But by the mid‑2010s, cash shortages and mounting bills began hurting the chain. Suppliers went unpaid, salaries were delayed, and creditors grew impatient. Multiple attempts to restructure the business failed, and the chain eventually collapsed under the weight of its debts.
The total amount owed by Nakumatt and related companies to different creditors, including banks, distributors, landlords and tax authorities, has been estimated between Ksh 30 billion and Ksh 40 billion. Banks were among the largest secured creditors, holding land and property as guarantees against large loans.
In recent years, lenders have stepped up legal action and moved to liquidate collateral to recover at least part of the money owed. Standard Chartered’s latest notice is part of this ongoing effort to resolve longstanding unpaid debts.
Some of the land parcels are in prime urban areas, and their sale could fetch significant sums if auctioned on the open market.
The notice also highlights challenges facing Kenya’s retail sector, where rapid expansion fueled by credit has sometimes outpaced business fundamentals.
The Nakumatt case remains one of the most dramatic examples of this, with lawmakers, investors and business leaders watching closely as remaining assets are liquidated.
If the debt is not paid by the end of the 90 days, Standard Chartered is expected to move quickly to hold public sales of the properties under the Land Act, which allows lenders to dispose of charged land to recover outstanding loans.
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