A court-appointed administrator for Kenya’s Nakumatt Supermarket chain said yesterday that the company’s former chief executive is to be investigated over the loss of Ksh18 billion worth of stock following its move into voluntary supervision.
Last year, Nakumatt, which began life as a mattress shop in a rural town before expanding to have supermarket branches across Kenya and East Africa, had to close more than a dozen outlets following problems repaying its suppliers, landlords and other creditors.
The company had sought protection using Kenya´s newly enacted company laws, which provide a pathway for distressed firms to avoid complete collapse.
Nakumatt’s administrator Peter Kahi, Nakumatt’s has said he would look for a forensic investigator to investigate why former CEO Atul Shah wrote off the stock in May, before the company ground to a halt.
Speaking to the Reuters news agency, he said: “I don’t think it is something which happened within a year or a day. Maybe it is a build-up of so many years. Because 18 billion is quite a big sum, just to occur in one day.”