Dispute: Relief for Nakumatt in leased items row

The High Court in Mombasa has stopped Rentworks East Africa Ltd from confiscating equipment worth millions of shillings from Nakumatt Supermarkets over more than Sh42 million debt.

Rentworks EA Ltd had instructed Girmat Auctioneers to confiscate equipment at Nakumatt’s premises in Lavington and Prestige branches over Sh42,419,388 debt.

The company had leased its equipment to Nakumatt on December 20, 2004 for an indeterminate period at an agreed monthly rental payment and subsequently extended the contract in January 14, 2008.

Yesterday, Justice Jaden Thuranira gave orders stopping the company from repossessing the leased equipment for 30 days pending inter-parties hearing.

“In the interim, an unconditional stay of execution be and is hereby granted of the attachment commenced vide proclamation Notice issued on September 23, 2019 in respect to Nakumatt’s assets situated at her branches in Lavington and Prestige as well as any process for 30 days,” ruled Thuranira.

Nakumatt’s lawyer D Ngonze said the supermarket had already paid Rentworks Sh2.4 million.

He said through a contract dated January 25, 2019, Nakumatt agreed to pay Sh1,807,447, including VAT, until payment in full. They were to also pay Sh42,419,388 and VAT due and owing to the lessee as at January 23, 2019 before Nakumatt ran into financial turbulence.

“Nakumatt had exclusively taken possession of the equipment for the sole utility at their retail supermarket,” said Ngonze.

However, Ngonze said following the financial turmoil experienced by the once-prestigious chain-store in East Africa, they were unable to pay the monthly dues.