A mega clearance sale kicked off on Tuesday at two branches of the Nakumatt supermarket in Kampala following the tough financial times the Kenyan company has been experiencing.
The Uganda Revenue Authority (URA) announced the auction of perishable goods after the company failed to clear a Sh7.3 Million debt on overdue taxes.
The Ugandan Authority had, in August, taken over Nakumatt operations in three of its branches as well as at the retailer's headquarters.
"The clearance sale has started with Bugolobi branch today (Tuesday). After, we move to Kamwokya as we continue talks with the client," the taxman announced on its official Twitter page.
The Ugandan taxman conveyed that subsequent auctions for perishable goods from the Kampala stores would be advertised later.
"The (Nakumatt) management has been requested to make payment proposals for the outstanding balance to no avail. To mitigate the loss, we are proceeding to sell the perishable goods this afternoon. We shall advertise and sell the other items thereafter," a source from within URA told The East African.
Ugandan citizens reported having bought goods from the retailer at up to half the tag price.
In Kenya, the retailer has enjoyed the favour of the courts through a blanket order barring creditors and landlords from pursuing court cases against Nakumatt until their insolvency cases are determined.
Read More: High Court Issues New Order Over Nakumatt Supermarkets
