Amana Capital investor won’t repay money lost in Nakumatt

A new strategic investor into Amana Capital, which lost Sh255 million in collapsed retailer Nakumatt, will not provide funds to repay the money lost.

Amana said the unnamed investor would instead boost recapitalisation efforts and lead the future growth of funds under management.

“The strategic investor is working with the current shareholders to find ways to reduce and limit the loss of funds in the Nakumatt commercial paper over the next few years.”

“While the new investor will not provide the finance to repay any funds lost, all monies recovered from ongoing legal processes will be credited to the affected unit trust holders,” said the investment firm in a statement.

In February, the asset manager survived the liquidation of the Amana Shilling Fund (whose investor money was put in Nakumatt commercial papers) after unit trust holders voted for an extension of a moratorium freezing the withdrawal of funds for six months as it sought funds.

Amana Capital, which has some 1,400 investors, was one of the firms that cumulatively lost over Sh4 billion in Nakumatt commercial papers.

The Amana Shilling Fund’s only other investment is the fixed deposits they had invested in Jamii Bora Bank, put at Sh185 million.

Jamii Bora has since been acquired by Co-operative Bank and the funds are set to be a discussion topic during Amana annual general meeting this Friday.

The AGM is also set to seek a nod of approval for the new investor, discuss the Sh255 million gap, and the current state of the funds under the unit trust scheme. 

Amana Director Graham Shaw had earlier said the strategic investor would come in and buy the “value of the company which is the licences.”

Earlier in the year there had been panic and rush for mass withdrawals, forcing the intervention of the Capital Markets Authority.