Should the government bailout Nakumatt Holdings?

Nakumatt Supermarkets is one of the most visible Kenyan brands to date, its current financial challenges notwithstanding. It is a brand that has taken decades to build, employing thousands of Kenyans in the process. More than anything, the giant retailer is offering direct employment to over 5500 workers, who could be supporting a similar number of families if not more.

Its role in the wider economy is huge, ranging from the real estate sector where it is a tenant occupying millions in square feet of prime commercial space to being the buyer from thousands of local suppliers. Allowing the company to collapse would have huge ramifications across the economy, and the reasons for an urgent bailout are very compelling.