This archive report was first published on 5 January 2020.
January 5, 2020, marked the end of an era for Nakumatt, a once-thriving regional retailer that had been a source of pride for Kenyans and a major player in the East African market.
On Tuesday, creditors will vote to dissolve the company, bringing an end to a failed attempt to revive the firm.
The meeting will close the chapter on a brand that was once synonymous with quality and reliability, but ultimately succumbed to a combination of factors, including gross mismanagement, poor strategic decisions, tax issues, and massive internal losses.
At its peak in 2017, Nakumatt had 60 branches across the region, but by September 2018, this number had dwindled to just six.
Despite efforts by a court-appointed administrator to help the retailer recover, the company's woes continued to mount, with creditors owed a staggering Sh38 billion.
The sale of six branches to another retail chain yielded a paltry Sh422 million, highlighting the extent of the company's financial woes.
A forensic audit is now necessary to establish the extent of culpability by management in the collapse of the company.
