Standard Chartered targets Nakumatt properties in recovery of over Sh1.9bn debt

Standard Chartered Bank Kenya has moved closer to taking control of rental income and selling four properties linked to Nakumatt Investments Limited as it seeks to recover more than Sh967 million and US$7.3 million owed under credit facilities advanced to the collapsed retailer.

The bank in public notices dated August 20 relating to a High Court judicial review case announced it is seeking to appoint a receiver over rental income from the properties and separately notifying Nakumatt Investments of its intention to sell the charged properties.

The recovery action places the four properties at the centre of Standard Chartered's efforts to recover the outstanding Nakumatt debt and span three locations. One is located in Mombasa, one in Nakuru and two in Nairobi.

According to the bank's notices, Nakumatt Investments created the charges over the properties as security for obligations arising from facilities extended to Nakumatt Holdings Limited.

The Mombasa property was charged on February 11, 2011, for Sh4.05 million, while the one in Nakuru was charged on the same date for Sh20 million.

In addition, the two Nairobi properties were charged on January 27, 2012, securing Sh39.2 million and Sh29.3 million respectively. The notices state that the charges were created together with interest and other associated costs.

The amount however now being pursued by Standard Chartered is substantially higher than the original amounts secured against the individual properties.

As at June 22, 2026, the bank stated that Nakumatt Holdings owed US$335,525.83 under an overdraft facility and US$6,993,052.49 under a term-loan facility. It also owed Sh967,173,402.60 under an import invoice finance facility.

The two dollar-denominated facilities therefore amounted to approximately US$7.33 million, while the separate Kenya shilling facility stood at more than Sh967 million as of the date specified in the notice.

The bank's notices state that demands for payment had previously been made. A demand published on March 19, 2026, required payment of the outstanding amounts, including US$331,872.95 in respect of the overdraft facility, US$6,993,052.49 for the term loan and Sh839,099,376.45 for the import invoice finance facility at that stage.

The notice reflects the outstanding import invoice finance amount at Sh967,173,402.60 as at June 22, 2026.

With the statutory recovery process continuing, Standard Chartered has notified Nakumatt Investments that its power to appoint a receiver over income generated from the charged properties has arisen.

Under the Section 92 notice, the bank says it intends to appoint a receiver of the income collected from the properties.

The notice provides for the statutory period to run before the receiver is appointed, with the purpose of recovering the amounts owed to the bank.

At the same time, the bank has issued a separate Section 96 notice of sale concerning the same properties.

The notice states that the bank's power of sale has arisen and that it intends to proceed with the sale of the charged properties if the outstanding obligations remain unpaid.

The action follows earlier attempts to enforce the securities. According to the High Court case records, Standard Chartered had advanced various credit facilities to Nakumatt Holdings, secured by guarantees and property charges provided by Nakumatt Investments and Creative Enterprises.

The court record lists the same four Nakumatt Investments properties among the securities.