Auctioneers have been unable to find a buyer for the home belonging to former Nakumatt CEO Atul Shah.
The home was taken over by auctioneers in July after Shah failed to pay a debt of Ksh2 billion owed to the Kenya Commercial Bank (KCB).
“The sale of Mr Atul’s house did not happen last month although we received numerous enquiries. We attribute this to a general slowdown in the economy especially in the real estate business,” a representative of Phillips International Auctioneers told the Business Daily.
“The amount we got was almost close to the sale value. This did not meet our targets and we had to reject it. We plan to float the house again for auction soon but in consultation with the bank,” he added.
The property known as LR No. 5/134 (IR No. 49802) is easily identified as House number 3 located at Elite Gardens Estate in Muthangari.
The property is a four-bedroom villa with a domestic servant quarters and a semi-permanent generator room.
By the time Nakumatt closed completely in January 2020, it owed creditors over Ksh30 billion including Ksh18 billion to suppliers, Ksh4 billion to commercial paper holders and the rest to banks.
Nakumatt owed DTB Bank Ksh3.6 billion, Standard Chartered Ksh900 million, KCB Ksh1.9 billion, Bank of Africa Ksh328 million, UBA Ksh126 million and GT Bank Ksh104 million.
Nakumatt had over 60 outlets in the East African region which have been reduced to nothing.
Creditors have been identifying assets and bank accounts held by the fallen retailer and its associates in a bid to recover their lost money.