20 February 2018

Kenya: Galleria Mall Says It Cannot Pay Bank Loans

The owners of Galleria Mall are back in court seeking to evict cash-strapped retailer Nakumatt, arguing that the supermarket's presence in the shopping complex is killing its business.

Galleria Mall claims that the Kenya Revenue Authority (KRA) has attached the rental payments from its remaining tenants, making it difficult for it to meet its loan obligations.

Parkside Developments Limited claims that KRA has directed the tenants at the Galleria Mall to pay the rents directly to the taxman over unsettled Sh86 million tax arrears.


Parkside developments says that the move by KRA has depleted its remaining revenue streams, making it difficult for it to service its bank loan.

It wants the court to allow it to take over the space currently occupied by the Nakumatt.

"That this honorable court hereby grants leave to the interested creditor to exercise its right of forfeiture and re-enter its premises known as unit 0.1 situated on the ground floor of Galleria mall," reads one of the orders sought by the firm.

The firm says it has already secured another tenant who is ready to occupy the space, arguing that Nakumatt has not restocked the mall and this has reduced the foot traffic to the shopping complex, affecting other tenants.

The firm claims that Nakumatt owes it in excess of Sh107 million in rent arrears and other service charges.

Last month the High Court gave Nakumatt Holdings a lifeline to fight for its recovery after it allowed the appointment of an administrator.


Justice Fred Ochieng ordered Peter Obondo Kahi to be appointed as an administrator under the provisions of Section 563 of the Insolvency Act.

Consequently, this keeps at bay the landlords who have been queuing to evict Nakumatt from its premises, unless allowed by court or by consent of the administrator.

The administrator is expected to, within 60 days of his appointment, ensure a meeting of all Nakumatt creditors is held and address all their concerns.

But the firm accuses the administrator of failing to engage it in any manner with a view to settling the debt.

The Judge in his ruling had left a window open for the parties to make an application for eviction if need arises.


Mike Sonko Claims Child Trafficking at Pumwani Hospital

Nairobi Governor Mike Sonko has introduced a new twist to the raging debate on the rot at Pumwani Hospital, suggesting… Read more »

See What Everyone is Watching

Copyright © 2018 Nairobi News. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 600 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.