Tea company moves to court seeking wind up of Nakumatt over Sh60mn debt

July 25, 2017
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The retail chain supermarket has been experiencing difficulties in paying suppliers and keeping some of its outlets well stocked/FILE

, NAIROBI, Kenya, July 25 – A tea manufacturing company is seeking to wind up Nakumatt Supermarket over a debt amounting to Sh60million.

According to Gold Crown Beverage’s the amount owed has remained unpaid since January 2016. The tea producing firm claims that Nakumatt has committed various bankruptcy offences for the last two years.

Gold Crown contends that the debt is within the prescribed insolvency level in accordance with the Insolvency Act, 2015.

The Kericho based firm wants the retail chain supermarket liquidated by the court under the Insolvency Act and an authorized receiver appointed to act as the provisional liquidator.

The aggrieved firm alleges that it has repeatedly requested Nakumatt Ltd for payment but it has refused. In a sworn affidavit filed by finance manager David Karanja, the court has been told that it is only fair the orders sought granted.

“The orders sought should be granted since the company is unable or has no reasonable prospects to pay its debts,” Karanja states.

Deputy Registrar Elizabeth Chepkoich Tanui has directed the tea firm to advertise its petition to the public before liquidation proceedings can continue.

Parties will appear in court on September 17 for mention to confirm compliance of the orders and further directions.

The retail chain supermarket has been experiencing difficulties in paying suppliers and keeping some of its outlets well stocked in the recent past over cash flow challenges.

The retailer, which is the largest in the region claims a harsh operating environment has triggered what it termed as transient challenges.

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