Connect with us

Business News

Nakumatt employees yet to receive their pay one year after collapse

Published

on


Employees of the collapsed retail chain Nakumatt have not
received their pay one year after it closed down. The workers have 8-months’
worth of unpaid salaries.

The family-owned retail store closed down most of its branches in 2018 after it failed to pay creditors an estimated KSh35 billion. Approximately KSh700 million is owed to Nakumatt’s 4,000 former employees. The amount owed to each worker is estimated at between KSh200,000 and KSh3 million based on their salary scale.

In addition to unpaid salaries, Nakumatt owes its ex-workers unremitted pension deductions. The Retirement Benefits Authority (RBA) Chief Executive Nzomo Mutuku in a recent interview with Kenyan Wallstreet revealed that retail businesses are some of the main culprits of unremitted pension contributions.

The company is currently undergoing an audit that will reveal the real value of its assets and liabilities. In January 2018, the court-appointed Peter Kahi to act as Nakumatt’s administrator. Mr. Kahi’s role is to help the retailer back on its feet or find a strategic investor. According to the administrator, the retail store is yet to find a strategic investor.



Source link

Comments

comments

Trending