Another Kenyan company is on the verge of collapse and the man expected to save it is the same man expected to bring back Nakumatt to profitability.
The company is Deacons East Africa and the man is Peter Kahi.
In a notice published in the local dailies, Deacons East Africa has announced its intent to appoint Kahi- the Certified Fraud examiner as its administrator.
In the notice, Deacons board of directors have made public their intention to place the company under administration as a result of the financial difficulties it has been facing.
Kahi alongside Atul Shah, both of PKF consulting are being considered to take over as joint administrators of the company.
Shah is the CEO of PKF Eastern Africa and a director of PKF consulting limited.
Kahi on the other hand is a certified Public accountant , and a licensed Insolvency Practitioner in Kenya.
He has vast experience in Fraud & Misconduct Investigations, Expert Witness, Anti- Money Laundering, Fraud Risk Management and Dispute Advisory.
In the six months ending June 30, Deacons registered a loss of Sh229.5 million compared to Sh180.4 million reported in the same month in 2017.
The NSE listed firm attributed the loss to closure of operations of Mr Price that pushed down revenues by 20.7 per cent on the decrease of net sales.
The sale of Mr Price stores to the franchise owner based in South Africa earned the garment retailer Sh133.3 million
This year alone, the company has had plans to close about four stores as it seeks to cut on operation cost. In May 2017, it fired four of its top managers over a depressed trading environment.
The Insolvency Act number eight of 2015 gives companies going through financial distress an opportunity to explore the possibility of rescuing the company.
Kahi took over Nakumatt’s administration role in January this year in efforts to bring it back to recovery.
This was after the high court judge Fred Ochieng granted Nakumatt an administration order offering it a chance to fight for its recovery as opposed to liquidation.
While we are yet to see concrete solutions by Kahi on Nakumatt, we can only wait and see how he plans to turn around Deacons financial books