Leading retailer loses billions in row

Nakumatt Supermarketshas incurred more than Sh1.6 billion loss as a result of the controversial construction of additional floors to the Hazina Trading Centre. 

Nakumatt managing director Atul Shah attributed the huge losses, mainly at Nakumatt Lifestyle hosted by the Hazina Towers, to loss of tenants and demands for compensation from the affected tenants as well as reduced customers as the construction saw one of the building’s entrance closed.

Appearing before National Assembly’s Public Investments Committee (PIC) yesterday, Shah said the figure was likely to go up as time goes by.

The company is seeking the committee’s intervention to have the contractor barred from further construction. Lawyer Manasseh Mwangi representing the chain store told the Adan Keynan led committee that the construction is illegal as it had not been approved.

“The construction is an impending catastrophe, we have even written to the Nairobi County government to address the issue but no response has been forthcoming,” he said.

Asked by MP Thomas Mwadegu why the supermarket continues to operate despite the danger posed, Shah said they are awaiting the county, Nema and NSSF to stop construction works.

Keynan directed Nairobi Governor Evans Kidero be summoned to explain to the committee why his office has not responded to issues raised. Nakumatt has also gone to court seeking to have NSSF stopped from terminating its 20-year lease.