Nakumatt reportedly confessed to senior government officials that its debt level is beyond Ksh30 billion and not the publicly known Ksh18 billion.
According to a report appearing in The Standard, the shopping giant is said to be intentionally hiding the mess in its books to avoid other suppliers and business partners getting details of the mess and completely shutting down the company.
The report indicate that the supermarket chain used the accruing debt to open more branches, a fact they openly confessed to state officials while seeking the bailout recently.
The mess at Nakumatt can be blamed on the on fraud which at one point saw a senior auditor executed by hit-men hired by company officials who were scared that the mess would be revealed.
A number of suppliers including GSK, Unilever, KCC, Africa Cotton Industries and EABL have withdrawn their support the struggling chain while others like Thika Road Mall are actively pursuing ways to ensure that they salvage whatever is left of the chain before it completely shuts down.
After the extent of looting and mismanagement of the supermarket became public, the man who was running the show, former Regional Director of Strategy and Operations Thiagarajan Ramamurthy aka TRM, jumped ship and is now the Group CEO at BIDCO, another family owned business which is not being managed in a straightforward manner.
TRM has been joined at BIDCO by another manager who was part of mess elsewhere, Chris Diaz. The former KQ official was recently asked to leave or face a sack when