Nakumatt Diani was shut down on Friday amid efforts to revive what was once East Africa's thriving supermarkets chain.
Some of employees were shocked in the morning when they found the premises locked.
In a notice seen by The Star, Southcoast Holdings Limited had notified Nakumat that the owner of the building had decided to re-occupy it.
"In view of the past demands for rent owed, which you have admitted and failed to honour promises to pay, and in exercise of our rights under the lease as stated, the landlord has taken possession of his premises..." read the notice signed by Philip Muoka.
"...the terms granted under lease now stand absolutely terminated and the landlord assumes control of the premises."
The lease dated December 2010 says that if
Nakumatt does not pay rent seven days after it is due, whether formally demanded or not, the premises can be taken over.
The retailer re-opened its main Eldoret branch a day after it was shut down.
In June,
Nakumatt Holdings denied reports of the closure of eight branches across the country, saying some were among its most popular.
In a statement, the supermarket asked customers
to ignore the "erroneous and false rumours" and "categorically" stated there was no intention of closure.
The retailer has been facing financial challenges with a debt of about
Sh15 billion.
It had asked for the government's help to clear the debts but this was not granted. Brookside Dairies, Chandaria Industries, New KCC, Redstar International, Kisima Management and Bobmil Industries are some of the companies Nakumat owes close to Sh3 billon.
Other companies include Kenindia Insurance, Chania Veterinary distributors, Haco industries and CK Patel.
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