One of Kenya's leading Supermarkets, Nakumatt, has shut down its three branches at major malls in Uganda.
A statement released by the Head of Retail at Real Estate Company Knight Frank stated that Nakumatt branches at Acacia Mall, Village Mall and Victoria Mall had been closed.
The statement read: “The supermarket space under these malls will go under redevelopment to add additional values to our shoppers and their shopping experience."
The management expressed regret for the decision but assured that the company would be back to provide better shopping experience to its customers.
"We humbly regret the inconvenience caused but keep watching this space to see your shopping experience is taken to a new level in Uganda."
Nakumatt has been going through hard financial times in the past few months.
Earlier on, Nakumatt Boss Atul Shah wrote to Industry, Trade and Cooperatives Principal Secretary Chris Kiptoo asking the state to help the struggling retail giant like it did with Uchumi supermarket.
The PS, however, stated that the request was impossible as Nakumatt was a private company, unlike its counterpart Uchumi which the Government holds a stake.
“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.
Shah blamed the Supermarket's latest woes on a series of government actions dating back to 1998 including 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 highlighted the bombing of Westgate Shopping Mall in 2013 stating that it contributed to Nakumatt's current problems.
Here is the notice by Knight Frank:
