NAIROBI, Kenya — Standard Chartered Bank Kenya Limited has issued a statutory notice to Nakumatt Investments Limited over unpaid loans linked to the collapsed retail chain Nakumatt Holdings Limited, signaling plans to auction several properties used as collateral if the debt remains unsettled.
The bank invoked Section 90 of the Land Act, giving the company 90 days to clear outstanding obligations or face enforcement action, including the sale of charged properties located in Nairobi, Mombasa, and Nakuru.
According to the statutory notice, Nakumatt Holdings owes the lender USD 331,872.95 under an overdraft facility and USD 6,993,052.49 linked to a term loan facility. The bank also claims an additional liability of Sh967,173,402.82 under an import invoice finance facility.
Properties Used as Collateral
The debt is secured against several parcels of land charged to the bank by Nakumatt Investments.
These include Land Reference Number MN/1/9626 in Mombasa, Nakuru Municipality Block 9/47 in Nakuru, and two Nairobi properties—Land Reference Number 209/4063 and Land Reference Number 209/4058.
The charges were created between February 2011 and January 2012 as security for credit facilities extended to the retailer during its expansion phase.
The bank stated that the properties collectively secure the outstanding obligations owed by Nakumatt Holdings.
“If Nakumatt Investments Limited has not paid the secured amounts within 90 days after the date of publication of this notice, Standard Chartered Bank Kenya Limited will proceed to exercise the remedies available to it under the charges and the Land Act, including proceeding to sell the charged properties,” the notice reads.
Legal Backing for Recovery
The statutory notice follows a ruling in the High Court Judicial Review Application No. E249 of 2025, which allowed the lender to pursue recovery measures in line with the security instruments and applicable law.
Under Kenyan land laws, lenders are required to issue a statutory notice giving borrowers time to rectify default before exercising remedies such as auctioning collateral.
The notice also informs Nakumatt Investments that it retains the right to seek relief in court under the provisions of the Land Act.
A Long Tail of Nakumatt’s Collapse
The recovery process marks another chapter in the prolonged financial fallout following Nakumatt’s dramatic collapse several years ago.
Once East Africa’s largest supermarket chain, the retailer expanded rapidly across Kenya and the region before running into financial distress marked by mounting debt, unpaid suppliers, and shuttered stores.
Creditors—including banks, landlords, and suppliers—have since pursued various recovery efforts as courts continue to handle disputes linked to the retailer’s debts and assets.
If the default remains unresolved within the statutory period, the auction of the properties could become one of the latest attempts by creditors to recoup losses tied to the retailer’s downfall.
