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TEA FIRM FILES INSOLVENCY SUIT AGAINST NAKUMATT OVER SH 60M DEBT

Tea firm sues to have Nakumatt liquidated over Sh 60M debt

A tea company has filed an insolvency suit against the struggling supermarket chain, Nakumatt, over a Sh Sh60 million debt.

Tea Brewer Gold Crown Beverages is seeking to have the retailer liquidated in order to recover the money, which Nakumatt has not paid since January 2016. The firm further states that Nakumatt has committed various bankruptcy offences within the last two years

“The debt amount owed to the petitioner by Nakumatt is within the prescribed insolvency level in accordance with the Insolvency Act, 2015,” reads the court documents.

The tea firm argues that they have made repeated requests to the company for the payment or part payment of the debt but Nakumatt has refused to pay the debt amount.

“As at June 28, 2017 Nakumatt was justly and truly indebted to Gold Crown Beverages (and remains so indebted) in the aggregate sum of Sh60,738,069.47 being the amount due for payment of Gold Crown Beverages’ invoices in accordance with the joint business plan, March 2016-February 2017 of Nakumatt,” says Gold Crown.

Under Kenyan law a firm or an individual served with a statutory demand must within 21 days pay all or part of the liability due, or face court action that could end in an order for liquidation.

Gold Crown Manufacturers is the processor of Kericho Gold, Baraka Chai and London Fruit and Herb brands of tea.

High Court Deputy Registrar, Elizabeth Chepkoich Tanui, directed Gold Crown to advertise its petition to the public before the liquidation proceedings can continue.

The case will be mention on 17th September 2017 before both parties to verify compliance with orders and for further instructions.

Nakumatt’s Financial Woes

Nakumatt, as Kenya’s largest supermarket chain, has been having a financial crisis and is reported to have accumulated a huge debt from Sh4.7 billion in 2012 to an estimated Sh18 billion as at April 2017.

NAKUMATT’S FADING GLORY

 

President Kenyatta declared winner.

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