In a statement on Thursday, Nakumatt Holdings managing director Atul Shah admitted that the chain was facing financial challenges that had affected its cash flow.

“These challenges range from a depressed economy, higher operating costs and extraneous factors including enhanced risk management due to prevailing security threats,” he said.

Shah further revealed that the retail chain is currently engaging a number of local and international partners for possible capital injection to subvert further turbulence.

It is estimated that Nakumatt Holdings requires an estimated Sh5 billion shillings to regain its market stability.

Waaah! Is it because of those blue label products they keep putting up EVERYWHERE? On Twitter I saw some supplier complaining of losing shelf space because of the blue labels.
Then I also saw a rumor that Unilever, Cocacola & Pepsi have suspended supplies into Nakumatt.
If Nakumatt is getting into trouble, what about these other guys like Uchumi and Tuskys which constantly have issues?

I think this is the closest theory to explain nakumatt's predicament.

They have overstock and end up with alot of dead stock.

Am also thinking the changes in the banking sector are beginning to bite.Banks have become tight with their overdrafts.Both to the supermarket and the suppliers.Banks have lines called Invoice Discounting which are now dying since the margins are low.The banks are also keen on who the Principle is on the Invoice and are not accepting some.That effectively grounds the supplier who is not paid by the Principle on delivery nor the bank advancing them working capital.

We clapped at Interest rates capping but me thinks kunaanza kuharibika.

Really? How is that when all goods they buy are on consignment? They pay once sold...there is no cost to Nakumatt for holding stocks, the cost is on the supplier?