Mombasa company sues Nakumatt over Sh26m rent arrears

Thursday November 9 2017

Nakumatt

Nakumatt's landlord at City Mall building in Mombasa has sued the supermarket chain demanding payment of Sh26.6 million for rent, service charge and promotion fund. FILE PHOTO | DIANA NGILA | NATION MEDIA GROUP 

By PHILIP MUYANGA
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Troubles bedevilling Nakumatt seem far from over after its landlord at City Mall building in Mombasa sued the supermarket chain demanding payment of Sh26.6 million for rent, service charge and promotion fund.

Ideal Locations Limited also wants Nakumatt Holdings Ltd, the parent company, directed to immediately vacate the premises and not later than seven days from the time the order is issued.

Through lawyer Willis Oluga, Ideal Locations also wants Nakumatt to pay all accrued payments at the date of vacating the premises.

Mr Oluga argues that Nakumatt has on numerous occasions deliberately defaulted to pay rent, service charge and promotion fund when it falls due as agreed.

AGREED DATE

He says that in the instances where Nakumatt has made payments, it has made them later than the agreed date of the 7th of every month.

Mr Oluga argues that according to a lease agreement, failure to pay rent amounts to a breach of agreement and gives the plaintiff right to repossess the premises.

The company is also seeking a declaration that Nakumatt is in breach of the sub-lease agreement dated June 9, 2014.

According to the company, several creditors have threatened to sell or dispose of the assets or revenue of Nakumatt in order to recover monies owed to them.

TUSKYS DEAL

The company further argues that Nakumatt has materially changed the nature or mode of conduct of its trading by entering into or pursuing a merger or a trading partnership with Tusker Mattresses Limited (Tuskys supermarkets).

Ideal Locations says it has a loan of Sh545 million with Prime Bank which is secured by the suit property and the rent received is assigned to the bank for servicing the loan.

Mr Oluga argues that failure to pay or erratic payment of rent by Nakumatt has subjected the company to an imminent danger of losing the property as the bank is likely to foreclose and exercise its statutory power of sale.

VACATE

“The defendant should vacate the suit premises to enable the plaintiff lease out the same to another tenant who is willing and capable of making regular payments,” Ideal Locations states.

The company claims that if it is not permitted to take possession of the premises, it will lose it to Prime Bank as there is likelihood it (bank) will sell it to recover its loan.

Ideal Location Limited also says that despite its demand that Nakumatt makes due payments and vacate the premises for breach of terms and conditions of the lease agreement, the supermarket has failed to do so.

In his witness statement, a director of Ideal Locations, Mr Anish Doshi, says that Nakumatt has defaulted in making other payments such as service charge, electricity bills and promotion funds when they fall due.