A group of ex-Nakumatt workers have come together and started their own supermarket in Kisumu County.
The supermarket, Lemigo Holdings Superstore, is located in Kondele and will be officially opened later this month.
A director at the Lemigo Superstores explained that the move to open their own supermarket was propelled by the experience they had gained from Nakumatt, having served in the former retail giant for over 2 decades.
[caption caption="Interior view of Nakumatt supermarket"]
[/caption]
“We feel we have gained enough experience because it is a business we understand, we felt it was time to resign and set up our own store,” Mr Benson Olang' was quoted by Capital Business.
According to him, Lemigo will not always only be in Kisumu but would spread to various counties.
He also called upon small traders to embrace Lemigo Superstores and supply the new outlet with products for sale.
“We want to encourage small businesses to bring their products so that we can provide a market for their products,” the Director stated.
Meanwhile, Nakumatt Chief Executive Officer (CEO) Atul Shah blamed the closure of two banks in the country by the Central Bank of Kenya (CBK) for the supermarket's collapse.
In a recent interview, Mr Shah noted that Nakumatt started going down when Imperial Bank and Chase Bank were placed under receivership by the CBK.
[caption caption="File image of Nakumatt CEO Atul Shah"]
[/caption]
"The Nakumatt engine relied heavily on bank loans to roar on. For a long time, things were fine; we would repay the loans and readily get some more.
"When the two banks collapsed, and the new law took effect, money dried up. Despite repaying our loans, nobody was willing to finance us. The cycle stopped abruptly; Nakumatt’s fuel was no longer available," he explained.
