Troubled Nakumatt Rwanda has been evicted from Kigali City Tower after failing to pay rent for 10 straight months, resulting into 80 workers losing jobs.

A city property manager says Nakumatt had accumulated Rwf200 million ($232,504) rent arrears for the 45,000 square feet retail space at Kigali City Tower.

Rwanda Today could not independently verify the rent arrears either from Kigali City Tower or the Nakumatt administrator, property management firms confirm the arrears.  

They said as an anchor tenant, Nakumatt was paying a monthly $12 per square meter which it has been struggling to meet.

“We have been under pressure from Kigali City Tower to vacate the place,” Gaspard Kayiranga told Rwanda Today.

Karayiranga was appointed by Nyarugenge Commerical High Court as the administrator of Nakumatt Rwanda after the board directors filled for insolvency, becoming the first Rwandan company to benefit from the new insolvency legislation.  

Insolvency

Atulkumar Maganlal Shah filed for insolvency early this year on behalf of the Nakumatt Rwanda board on grounds of financial struggles.

While the weight of the debt Nakumatt Rwanda is struggling has not been made public, analysts say it outweighs the Nakumatt Rwanda assets.

This means even if the company is to be liquidated in its current state, the lenders and suppliers will be unable to recover their money.

It understood that when they recently met most of the Nakumatt Rwanda suppliers allowed the administrator some time to turn around the company profitability after years of loss making.

Court was told that Nakumatt assets are currently valued at Rwf2 billion ($2.3 million).

Suppliers

Some the big suppliers include Hotpoint Rwanda Ltd, a distributor and sellers of electronic appliances and Shoppers Distributors Ltd while I&M Bank Rwanda Ltd.

The Court was told that I&M Bank Rwanda is demanding Rwf1 billion ($1.1 million) from Nakumatt. The credit was borrowed to finance its operations in Rwanda.