The High Court has extended the appointment of Peter Kahi as administrator for Nakumatt Holdings for 12 months, directing him to conduct a new financial audit and organize creditor meetings to address the retailer's ongoing insolvency crisis. Justice Mary Kasango's March 2019 ruling emphasized the need for urgent action as Nakumatt faces Sh36 billion in outstanding debts, with creditors rejecting previous proposals to restructure payments over eight years through 2026.
Kahi's mandate includes reporting creditor decisions within a month of meetings, following the court's acknowledgment of worsening conditions. These include the 2018 demolition of Nakumatt's Ukay Branch for encroaching on protected land and the withdrawal of major investor Tusky's. The administrator's March 2018 report revealed a Sh23.4 billion net loss for Nakumatt between February and December 2017, contrasting with its 2013-2016 revenue growth from Sh40 billion to Sh52.2 billion.
Creditors, including banks, suppliers, and Kenya Revenue Authority, have consistently opposed Kahi's plans to convert debt into equity or spread payments through 2026. The court noted that Nakumatt's Sh35.8 billion in assets could only cover Sh30.6 billion of its liabilities, leaving significant unsecured losses. The retailer operates 64 outlets across East Africa but remains at risk of insolvency despite the extension.
