Uganda starts auctioning Nakumatt goods and the worst is yet to come

The taxman has commenced auctioning goods owned by the struggling regional retail chain.

Uganda has begun auctioning goods owned by Nakumatt as it seeks to recover millions of shillings owed by the cash-strapped retail chain.

The East African reports that the Uganda Revenue Authority (URA) on Tuesday started the public auctions by selling perishable goods from two of Nakumatt’s Kampala outlets, Bugolobi and Kamwokya.

“The clearance sale has started with Bugolobi branch today (Tuesday). After, we move to Kamwokya as we continue talks with the client,” the Ugandan taxman said on its official Twitter page.

The auctions commenced despite the fact that URA said that talks are still ongoing with the retailer over possible recovery of $71,000 dues.

And it is not just the perishable goods that the authority will auction as it later said that it will advertise auction dates for Nakumatt’s non-perishable goods. The taxman is expected to wind up with auctions at the Oasis branch, also in Kampala.

In August, URA took over Nakumatt’s Kampala-based warehouse, which is also the retail chain’s headquarters in Uganda, as well as its three stores as part of the revenue recovery effort.

Nakumatt has been compounded by huge debt woes in Uganda and Kenya with several creditors surfacing to claim at least Ksh130 million ($1.2m) since March.

Suppliers in Uganda have filed court cases to recover unpaid invoices and rent arrears. The retailer is also facing two insolvency suits in Nairobi.

A Kenyan court last week gave the struggling retailer a lease of life by issuing a blanket order barring all creditors from attaching Nakumatt’s property until the insolvency suits have been determined.

Nakumatt’s landlords—High Park Mall (Highridge), Thika Road Mall (Roysambu), Integer Limited (Uhuru Highway) and Highport Properties which has leased six godowns to Nakumatt—have all attempted to push the distress button on Nakumatt since March, before the court intervened.

The financially troubled retail chain was expecting a six-week phased injection of Sh7.7 billion from an unnamed private equity fund beginning March.

Failure to secure the funding has caused widespread product stock outs and seen it delay employees’ pay, prompting demonstrations and court action from the financially-strained workers.

Our newsletter gives you access to a curated selection of the most important stories daily.

Welcome to the Pulse Community! We will now be sending you a daily newsletter on news, entertainment and more. Also join us across all of our other channels - we love to be connected!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Sadio Mane the odd one out as Bayern Munich stars take team photo with glasses of beer

Sadio Mane the odd one out as Bayern Munich stars take team photo with glasses of beer

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022