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Troubled Nakumatt Named Best Taxpayer In Rwanda

Troubled retail operator Nakumatt Holdings has received accolade in neighbouring Rwanda after it was recognised as the best taxpayer, reports Business Daily Africa.

Nakumatt Rwanda, which operates 3 retail stores in Kigali, took home the 2016 Best Taxpayer trophy as well as the Best Electronic Billing Machine (EBM) user award last Friday.

Rwanda Revenue Authority (RRA) Commissioner-General, Richard Tusabe, hailed Nakumatt’s win saying the retailer and other private sector players had helped drive up tax compliance due to adoption of tamper-proof technology accounting.

“Tax compliance in the country is steadily edging up with continued support from various economic fronts including the private sector,” Mr Tusabe said.

The accolades at the subsidiary are a far departure from troubles facing the retailer back home as it eyes a merger with rival Tuskys as its final survival strategy.

The move towards rescue of the chain from its mounting debt also comes amid branch closures, reports of delayed workers’ pay, huge supplier debts and legal tussles with some of its landlords.

Surpassed Targets

Nakumatt Rwanda country manager, Adan Ramata, said the firm would continue to maintain prudent tax management systems to support tax collection initiatives in the country.

Mr Ramata said they had successfully managed to integrate Electronic Billing Machines (EBM) across its branch network in Rwanda.

Currently, the retailer employs 7,000 people across its stores in Kenya, Uganda, Rwanda and Tanzania and has a Sh62 billion annual sales turnover.

Nakumatt owed suppliers about Sh15 billion as at February 2015, a position that saw it move to close loss-making branches in Kenya and Uganda in a bid to save up to Sh1.5 billion annually.


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