Nakumatt Properties Face Auction as Standard Chartered Pursues Over $7.33 Million Debt
Standard Chartered Bank Kenya has moved to recover about $7.33 million and KSh967.2 million owed through credit facilities linked to Nakumatt Investments and Creative Enterprises, with the lender targeting rental income and charged properties in Nairobi, Nakuru and Mombasa.
The recovery action follows a High Court judgment in Judicial Review Application E249 of 2025, which cleared the way for the lender to proceed with statutory recovery notices against the assets securing the outstanding facilities.
The debt comprises an import invoice finance facility of KSh967.17 million, a term loan of $6.99 million and an overdraft facility of $331,872.95. The amounts were outstanding as of June 22, 2026.
Standard Chartered has issued statutory notices under Section 90 of the Land Act as it moves to exercise its statutory power of sale over four properties charged as security for the facilities.
The targeted properties comprise Land Reference Number MN/I/9626 in Mombasa, Nakuru Municipality Block 9/47 in Nakuru, and Nairobi properties identified as LR No. 209/4063 and LR No. 209/4058.
The properties were charged to Standard Chartered between 2011 and 2012 to secure financing extended to Nakumatt Holdings, the retailer that subsequently collapsed.
Standard Chartered Targets Rental Income
In addition to preparing the properties for sale, Standard Chartered is seeking to take control of rental income generated from the charged assets. The lender is moving to appoint receivers over the rental income streams, allowing the proceeds from the properties to be directed towards servicing the outstanding debt.
The receivership action follows the publication of 90-day statutory notices on March 5, 2026. The notices were issued after the debt remained unpaid within the statutory period. The recovery process covers both the foreign-currency and Kenya shilling facilities advanced through overdraft, term-loan and import-invoice-finance arrangements.
High Court Judgment Paved Way For Recovery
The enforcement proceedings follow a High Court decision delivered on November 10, 2025, in Judicial Review Application E249 of 2025. The court granted Standard Chartered a declaration under the Fair Administrative Action Act that allowed the lender to use substituted service in issuing the statutory demands.
The authorisation enabled the bank to serve the notices through publication in the Kenya Gazette and national newspapers rather than relying solely on personal service. The court process addressed delays in serving the statutory recovery notices and provided the legal basis for the lender to proceed with the recovery process.
Following the issuance of the 90-day notices in March, the lender has now moved towards receivership over rental income and the sale of the charged properties.
Four Properties Face Auction
The assets secured against the facilities are spread across three major Kenyan cities. In Mombasa, the property targeted by the bank is Land Reference Number MN/I/9626. In Nakuru, the asset is Nakuru Municipality Block 9/47. The two Nairobi properties are LR No. 209/4063 and LR No. 209/4058.
The properties were used as collateral for financing extended more than a decade ago, with the charges registered between 2011 and 2012.
Standard Chartered’s enforcement of the securities comes as it seeks to recover the outstanding balances after the facilities remained unpaid.
The largest component of the local-currency exposure is the import invoice finance facility, which stood at KSh967,173,402.82 as of June 22, 2026. The term loan accounted for $6.99 million, while the overdraft balance stood at $331,872.95.
Together, the foreign-currency facilities amounted to about $7.33 million, in addition to the KSh967.17 million import invoice finance balance.
The recovery action therefore covers multiple lending facilities rather than a single loan, with the charged real estate and rental proceeds serving as the assets targeted for recovery.
