Nakumatt Property Assets Face Auction as Standard Chartered Seeks Sh2 Billion Recovery

 Four prime properties linked to the former retail giant Nakumatt Holdings Limited could soon go under the hammer after Standard Chartered Bank Kenya issued a statutory notice seeking to recover more than Sh2 billion in outstanding debt.

The lender has given Nakumatt Investments Limited 90 days to settle the arrears or risk losing the properties that were used as collateral for multiple loan facilities.

The notice follows a ruling by the High Court of Kenya which allowed the bank to publish the notice through substituted service after attempts to trace the company’s directors for personal service failed.

Debt Linked to Multiple Loan Facilities

According to the bank, the debt arises from several credit facilities previously advanced to Nakumatt, including:

• USD 331,872.95 from an overdraft facility

• USD 6,993,052.49 from a term loan

• Sh967.1 million from an import invoice finance facility

Together, the outstanding balance exceeds Sh2.1 billion.

Key Properties on the Line

The properties targeted for sale are located in Nairobi, Nakuru, and Mombasa, and were charged to the bank between 2011 and 2012 as security for the loans.

They include:

• MN/I/9626 in Mombasa

• Nakuru Municipality Block 9/47

• LR No. 209/4063 in Nairobi

• LR No. 209/4058 in Nairobi

If the arrears are not cleared within the notice period as stipulated under the Land Act (Kenya), the lender will be free to dispose of the assets through a public auction or private sale.

Fallout of Nakumatt’s Collapse

The latest recovery effort highlights the lingering financial fallout from the collapse of Nakumatt Holdings Limited, which was once one of East Africa’s largest supermarket chains before falling into insolvency in 2017.

Although the retail business was liquidated, creditors have continued to pursue recovery through property assets tied to the group’s investment arm.