Lavington Home of Ex-Nakumatt CEO To Be Auctioned Over Ksh2 Billion Loan

Atul Shah, the former chief executive of Nakumatt Supermarkets, will later this month lose his home located in the posh Lavington neighbourhood after defaulting on a Sh2 billion loan.

Atul had guaranteed the KCB loan taken by the fallen retail giant using the Lavington property as additional security for multiple bank loans.

The Lavington home was offered as security in 2011 and accounted for Sh25 million in the multi-billion shilling loans.

Following Nakumatt’s collapse, the debt has remained unpaid, and KCB, through Phillips International Auctioneers, is now going after the businessman’s four-bedroom villa with a servants quarter.

The house will be auctioned on August 24.

“We will sell it through public auction on August 24. We are looking at Sh30 million,” a representative from Phillips International Auctioneers told the Business Daily.

Cour records also show that KCB had earlier sold Mr Shah’s prime property in Industrial Area, Nairobi, to Furniture Palace International Ltd for Sh1.04 billion.

Nakumatt closed shop in January 2020 with debts estimated at Sh30 billion — including Sh18 billion to suppliers, Sh4 billion to commercial paper holders and the rest to banks.

Documents show  Nakumatt owed DTB Bank Sh3.6 billion, Standard Chartered Sh900 million, KCB Sh1.9 billion, Bank of Africa Sh328 million, UBA Sh126 million and GT Bank Sh104 million.

source http://nairobiwire.com/2021/08/lavington-home-of-ex-nakumatt-ceo-to-be-auctioned-over-ksh2-billion-loan.html