After accumulating debts amounting to Sh1 billion, Ukwala Supermarket has begun the process of shutting down.
The retailer chain has made an application in court seeking permanent closure of its business.
“The company is applying to be liquidated because of its indebtedness and inability to meet its financial obligations to creditors, suppliers, employees and the liabilities far outweigh the assets both fixed and movable,” Ukwala managing director Vijay Jayantilal says in court filings.
Business Daily reports that the supermarket owes Kenya Revenue Authority (KRA) Sh840 million, while the rest of the debt is owed to creditors, suppliers, and employees.
Other companies it owes include Kapa Oil Refineries, Ketepa, PZ Cussons, WoW Beverages, Africa Spirits Limited, Mumias Sugar and Chandaria Industries.
Ukwala had several branches in Nairobi, Nakuru, Eldoret, and Kisumu but has recently been relinquishing some of its outlets to Botswana retailer, Choppies.
Ukwala was previously was ranked as the fifth largest supermarket in Kenya behind Nakumatt, Tuskys, Naivas, and Uchumi.
Ukwala's shutdown bid comes days after Kenya's oldest supermarket Ebrahim closed down permanently after operating in the country in the last 75 years.
Other retailers such as Nakumatt and Uchumi are currently struggling to remain in business after they shut down several branches in the country.