Former employees of struggling retailer Nakumatt to open new Supermarket

Nakumatt Holding's employees from both Nyanza and Mega City Outlets in Kisumu staged a combined demonstration outside the Mega City Mall on the Nairobi-Kisumu Road in August over unpaid arrears. [Photo by Phillip Orwa/Standard

Former employees of troubled retailer Nakumatt could find relief after seven of their colleagues opened a supermarket in Kisumu.

The new supermarket, Lemigo Holdings, which opens its doors at Kondele in two weeks, is expected to draw its workforce from former Nakumatt staff rendered jobless after the closure of many branches, including a 24-hour outlet in Kisumu.

The founders, among them former Nakumatt Dar es Salaam branch manager Benson Olang’, say they pooled their terminal dues to set up the store.

“We felt we had gathered enough hands-on experience managing such a large retailer and we were ready to exploit any niche that arose because we understood the business. So we felt it was time to resign and set up our own store,” he said.

Financial difficulties

Olang’ said they had toyed with the idea of starting a supermarket for seven years, but the downfall of Nakumatt finally pushed them to step out.

Lemigo is located in a densely populated area of Kondele along Kisumu-Kibos road, a few metres from Tumaini supermarket which has enjoyed relative monopoly from a footfall that extends into Manyata, Car Wash and Migosi estates.

The outlet, which is undergoing final preparations for the launch, will employ 20 former stewards and cashiers who lost their jobs after the Mega Plaza branch closed doors.

It also seeks to support local enterprises by giving priority to Kisumu suppliers.

“We want to encourage small businesses to bring their products so that we can provide a market for them,” said Olang’.

“We have already recruited several local suppliers of eggs, milk, groceries, peanut butter among other products.”