- Standard Chartered Bank is pursuing the sale of four properties linked to Nakumatt Investments over an outstanding debt of more than KSh1.9 billion.
- The properties are located in Nairobi, Nakuru and Mombasa and were used as security for various credit facilities.
- The lender has moved to the next stage of recovery after Nakumatt failed to clear the outstanding amount.
- The dispute is linked to a 2025 High Court decision allowing substituted service of statutory notices.
Standard Chartered Bank Kenya has intensified efforts to recover more than KSh1.9 billion owed by Nakumatt Investments Limited. The lender is pursuing four properties in Nairobi, Nakuru and Mombasa that were provided as security for credit facilities taken by the collapsed retail chain. A statutory notice published in March gave Nakumatt 90 days to rectify the default before the bank could proceed with the properties.
The latest recovery action follows a long-running legal dispute involving the bank, Nakumatt-linked companies and the National Land Commission. The High Court ruled in November 2025 that Standard Chartered could use substituted service for statutory notices through the Kenya Gazette and a newspaper of nationwide circulation. That ruling cleared an important legal hurdle for the lender’s recovery process.
The amounts involved include a dollar-denominated term loan, an overdraft and an import invoice finance facility. According to the Kenya Gazette notice, the outstanding figures were $6.993 million for the term loan, $331,872.95 for the overdraft and KSh967.17 million for import invoice financing.
The properties at the centre of the dispute are spread across three major commercial centres. They include LR No. MN/I/9626 in Mombasa, Nakuru Municipality Block 9/47 and two Nairobi parcels identified as LR Nos. 209/4063 and 209/4058. The four properties were charged at different times between 2011 and 2012 as security for facilities extended to Nakumatt.
The Mombasa property was charged for KSh4.05 million in February 2011. The Nakuru parcel secured a KSh20 million facility, while the two Nairobi properties secured charges of KSh39.2 million and KSh29.3 million respectively. Interest and other costs have since pushed the overall liability far beyond the original amounts secured against the properties.
The properties therefore represent an important part of Standard Chartered’s recovery strategy. Their locations in Nairobi, Nakuru and Mombasa could make them valuable commercial assets. However, the exact current market values of the individual properties were not disclosed in the statutory notice.
How the debt reached KSh1.9 billion
The dispute dates back to credit facilities that Nakumatt took before its eventual collapse. The company’s financial problems eventually became severe enough to force the once-dominant retailer into insolvency proceedings. Standard Chartered is now pursuing recovery through assets that had been pledged as security.
The term loan accounts for the largest dollar-denominated portion of the debt. The import invoice finance facility is the biggest component in Kenya shillings, while the overdraft represents a smaller but still substantial liability. Together, the facilities amount to more than KSh1.9 billion based on the figures contained in the bank’s notices.
Standard Chartered had already warned in March that failure to settle the debt within the statutory period would result in enforcement of its rights under the Land Act. Business Daily reported at the time that the four properties were at risk of being sold if the default was not addressed.
High Court ruling opened the way
The legal battle played an important role in the bank’s ability to move forward with the recovery. In its November 10, 2025 judgment, the High Court allowed Standard Chartered to serve the statutory notices through substituted service. The decision followed delays by the National Land Commission in authorising the alternative method of service.
The court found that the bank was entitled to use publication in the Kenya Gazette and a newspaper with nationwide circulation to serve the relevant notices. It also ordered the National Land Commission to perform its statutory duty regarding the substituted service.
The March 2026 Gazette notice subsequently gave Nakumatt 90 days to settle the secured amounts. It also stated that the bank could pursue remedies available under the charges and the Land Act, including the sale of the charged properties if the default was not corrected.
Another chapter in Nakumatt’s collapse
Nakumatt was once one of East Africa’s biggest supermarket chains, with a wide network of stores across the region. Its financial troubles eventually resulted in the closure of outlets and the loss of thousands of jobs. The company’s collapse left banks, suppliers, employees and other creditors pursuing billions of shillings.
The recovery of assets has continued years after the retailer’s decline. Standard Chartered is among several financial institutions that have sought to recover money connected to Nakumatt’s unpaid obligations. Previous reports have shown that other banks were also among the major secured creditors involved in the supermarket’s insolvency.
The latest action shows that the financial consequences of Nakumatt’s collapse are still being dealt with through the courts and asset recovery processes. For Standard Chartered, the focus is now on converting the secured properties into funds that can reduce the outstanding liability.
Nakumatt now faces continued pressure to settle the debt or risk losing the properties securing the facilities. The bank’s statutory recovery process allows it to proceed towards enforcement if the outstanding default remains unresolved. The legal framework governing charges gives lenders the right to realise secured property after the required notices and procedures have been followed.
The four properties could therefore become the latest major assets caught up in the long-running Nakumatt liquidation story. Their eventual fate will depend on whether the outstanding debt is settled, an acceptable arrangement is reached or the bank proceeds with enforcement. For now, Standard Chartered’s recovery efforts remain focused on the four charged parcels.
