This archive report was first published on 2 January 2020.
January 22, 2018, marked a turning point for Nakumatt Holdings as it was placed under administration, but the company's financial woes began much earlier.
According to Parker Randall Eastern Africa's report for the year ended February 2018, Nakumatt's directors had borrowed more than Sh1 billion in interest-free soft loans by the time the company was placed under administration.
The report, which served as the retailer's independent auditor, did not specify which individuals owed the company money, highlighting the weak governance within the board of the former retail giant.
Nakumatt's founder and former chief executive, Atul Shah, was among the two individuals listed as directors of the company as of the report date.
As of February 2018, the amounts owed by insiders had dropped to Sh948 million, with the company's financial records showing that these receivables were not supportable based on available evidence.
The report noted that the amounts due from a director were interest-free and related to short-term advances through a current account.
