Former Nakumatt Supermarket CEO Atul Shah has lost personal property worth Ksh2 billion over loans owed Bank of Africa.

The High Court gave the bank the go-ahead to auction the property, registered under the name of Collogne Investments on August 24 to recover Ksh700 million given to Nakumatt.

Justice Mary Kasango dismissed an application by Collogne Investments to stop the auction by Bank of Africa.

Former Nakumatt Supermarket CEO Atul Shah
Former Nakumatt Supermarket CEO Atul Shah

The company told the court the forced sale of the facility will expose it to legal suits from third parties who have rented space in the property.

Probe by DCI

Banks have been more proactive in seeking their unpaid loans, with assets worth Ksh3.68 billion linked to Mr Shah and his family targeted for capture.

Nakumatt took several loans from Bank of Africa between 2013 and 2015 when it was grappling to settle suppliers’ dues.

The Directorate of Criminal Investigations’ anti-banking fraud unit is investigating Nakumatt over alleged theft and money laundering.