The Government has said it will not bail out struggling retail giant Nakumatt Limited.
Industry, Trade and Cooperatives Principal Secretary Chris Kiptoo said Nakumatt was a private company, unlike its counterpart Uchumi Supermarkets in which the Government holds a stake.
Kiptoo argued that he had not engaged the retailer on the issue of a possible bailout, adding that he had only inquired about its long-standing row with suppliers over alleged non-payment and closure of several of its outlets.
“We have no stake in Nakumatt and we are not bailing them out. We also have to consider the moral hazard where we will be encouraging private firms to come to the Government for help,” Mr Kiptoo stated.
Earlier on, Nakumatt had written a letter to PS Kiptoo asking the State to help them out like they did with Uchumi Supermarkets.
Nakumatt’s Boss Atul Shah blamed the Supermarket's latest woes on a series of Government actions dating back to 1998.
Some of the issues Mr Shah outlined in the letter include; the ban on imported beef suspected to be contaminated with mad cow disease, the Kenya Revenue Authority (KRA) move to issue a Sh1 billion tax demand as well as the demolition of Nakumatt Thika Road branch in November 2008.
He also accused the State of being responsible for the fire that gutted down Nakumatt Downtown in the Nairobi Central Business District, saying it was caused by repair works on a transformer along Kimathi Street.
Shah also highlighted the bombing of Westgate Shopping Mall in 2013 stating that it contributed to Nakumatt's current problems.
