Corporate News
Nakumatt managing director Atul Shah. PHOTO | FILE
By BRIAN NGUGI, bnjoroge@ke.nationmedia.com
In Summary
- A protracted court dispute between the retail chain and the NSSF has delayed construction of what is billed to be Nairobi’s tallest building on completion.
- Nakumatt maintained, however, that the negotiations would run parallel to its ongoing suit against the NSSF pending a potential “fruitful” resolution.
Nakumatt Supermarkets has entered into negotiations
with the State pension fund NSSF in a bid to re-start the stalled
construction of the Hazina Trade Centre.
A protracted court dispute between the retail chain and the
National Social Security Fund (NSSF) has delayed construction of what is
billed to be Nairobi’s tallest building on completion.
The supermarket chain moved to court two years ago
seeking to block the building of additional floors above its Nakumatt
Lifestyle Branch on grounds that the construction was disrupting its
business.
The NSSF hired Chinese construction company China
Jiangxi to finish building the 39-storey building, which already had
eight floors including the four that house Nakumatt.
The planned Hazina Trade Centre, at 39 stories is expected to be Nairobi’s tallest skyscraper.
“It is true that Nakumatt Holdings has opened talks
with NSSF over the contentious developments at Hazina Trade Centre,”
Nakumatt Holdings said in a statement.
The retailer maintained, however, that the
negotiations would run parallel to its ongoing suit against the NSSF
pending a potential “fruitful” resolution.
“We are also engaged in a commercial litigation
process and remain optimistic that the ongoing talks will allow us to
reach a mutually agreeable position,” said the retailer.
NSSF communications manager Christopher Khisa did
not respond to our queries on the matter by the time of going to press
as promised.
In September 2014, Nakumatt obtained temporary orders against NSSF stopping construction of the tower.
In September 2014, Nakumatt obtained temporary orders against NSSF stopping construction of the tower.
In its suit against NSSF, the retail chain had
asked the court to block construction of the Sh6.7 billion tower until
after 2023, when its lease expires.
Nakumatt claims it has a 20-year lease agreement
with NSSF from 2003 to carry its supermarket business from the ground,
1st and 2nd mezzanine floors of the building.
The supermarket has, however, argued that the
contractor is interfering with its business by dumping building material
waste, installing machinery and cranes, and causing what it calls
“unprecedented nuisance” to its staff and shoppers.
The chain has also argued that the contractor has
blocked entrances by scaffolding the entire premises, interfering with
human and motor vehicle traffic.
“There has been reduced number of shoppers, reduced
parking space and customers. There are serious traffic jams on Koinange
Street and Loita Street that spills over to University Way
Security at the site is poorly managed and Nakumatt
has no control. We risk outbreaks of communicable diseases,” the
retailer had earlier claimed.
As at 2014 the construction had cost it Sh1.62 billion in
lost business, the chain’s managing director Atul Shah had also claimed,
arguing that the number of shoppers had dropped by 37 per cent, causing
it huge loss and damages
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