Former CEO of the once successful retail giant Nakumatt, Atul Shah has lost his Lavington home to auctioneers.
Court documents show that the prime property worth at least Sh25 million was quietly sold by KCB Bank through Leakey Auctioneers.
The lender is seeking to recover Sh2 billion debt owed by Nakumatt.
A High Court dismissed an application seeking to overturn the sale.
“This court is not persuaded that the suit, as currently presented, demonstrates a prima facie case with a probability of success. Being unable to surmount that hurdle, it is needless for this court to discuss other aspects raised in the application,” Justice Francis Tuiyott said as he wondered why the court-appointed administrator was fighting to reverse the sale instead of Shah.
The administrator Peter Kahi argued that KCB did not issue Shah with a notice for auction. He also noted that the Lavington home was never offered as security for the multi-million shilling loans.
The home was put up as security in 2011.
“No good reason has been demonstrated as to why matters which truly belong to his corner (Mr Shah) must be urged by the principal debtor without his participation as a substantive party,” justice Tuiyott said.
Nakumatt which closed shop in January 2020 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.
Before winding up operations, the retailer owed Sh18 billion to suppliers, and Sh4 billion to commercial paper holders.
DCI’s Anti-Banking Fraud Unit is probing Nakumatt for alleged theft and money laundering.