Standard Chartered to Auction Nakumatt Properties Over KSh1.9 Billion Debt

Standard Chartered Bank Kenya has issued a statutory notice to auction several properties linked to the collapsed retail chain Nakumatt Holdings in a bid to recover outstanding loans totalling more than KSh1.9 billion.

In a public notice published on March 5, the bank warned that Nakumatt Investments Limited, which provided land as collateral for the loans advanced to Nakumatt Holdings, must clear the debt within 90 days or risk losing the properties through a forced sale.

The notice was issued under Section 90 of the Land Act, which allows lenders to exercise their statutory power of sale when borrowers fail to meet loan repayment obligations.

According to the bank, Nakumatt defaulted on several facilities, including an overdraft, term loan, and import invoice financing facility.

The outstanding amounts include USD 331,872.95 (about KSh 42.9 million) under the overdraft facility, USD 6.99 million (about KSh 903.2 million) for the term loan, and KSh 967.17 million under the import invoice finance facility.

Together, the obligations push the total debt exposure to well over KSh1.9 billion.

Properties at Risk of Auction

The threatened auction targets multiple parcels of land that were charged to the bank between 2011 and 2012 as security for the loans.

Among the properties listed in the notice are: Land Reference Number MN/I/9626 in Mombasa, Nakuru Municipality Block 9/47, Land Reference Number 209/4063 in Nairobi, and Land Reference Number 209/4058 in Nairobi.

Standard Chartered said the properties could be sold if Nakumatt Investments Limited fails to rectify the default within 90 days.

“If the amounts are not paid within the stipulated period, Standard Chartered Bank Kenya Limited will proceed to exercise its remedies under the charges and the Land Act, including selling the charged properties,” the lender said in the notice.

Court Clears Path for Recovery

The statutory notice follows a ruling by the **High Court of Kenya in Judicial Review Application No. E249 of 2025, delivered on November 10, 2025, which cleared the lender to pursue recovery through the charged assets.

The court decision effectively allows the bank to move forward with enforcing its security if the debt remains unpaid.

Long Shadow of Nakumatt’s Collapse

The planned auction marks the latest development in the long-running collapse of Nakumatt, once East Africa’s largest supermarket chain.

Founded by the Atul Shah family, Nakumatt was at its peak one of the most dominant retailers in the region.

By December 2015, the supermarket chain reported annual turnover exceeding KSh48.5 billion and operated more than 60 outlets across Kenya, Uganda, Rwanda and Tanzania.

The company also employed around 5,500 workers across the region.

However, the retail giant began experiencing severe cash flow problems in 2016, as mounting debt, supplier disputes, and operational challenges pushed the company into financial distress.

The retailer struggled to pay suppliers, landlords and employees, prompting creditors to push for administration in an attempt to salvage the business.

Attempts to Rescue the Retailer Failed

Efforts to restructure Nakumatt ultimately failed, with the brand gradually disappearing from Kenya’s retail landscape.

In December 2019, the company sold its final six branches to Naivas Supermarket, effectively marking the end of the once-dominant retail brand.

Creditors have since been pursuing legal action and asset recoveries to reclaim part of the billions of shillings owed by the collapsed retailer.

Estimates suggest Nakumatt accumulated debts ranging between KSh30 billion and KSh40 billion, owed to banks, suppliers and government agencies.

Creditors Continue Recovery Efforts

Banks were among the retailer’s largest secured creditors, with properties owned by Nakumatt and related companies pledged as collateral for loans.

With attempts to revive the business unsuccessful, lenders have increasingly turned to asset auctions and legal enforcement to recover part of their exposure.

The latest move by Standard Chartered signals that the credit recovery process linked to Nakumatt’s collapse is still ongoing, nearly a decade after the supermarket chain first ran into financial trouble.

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