Uchumi Supermarkets to be revived

Jun 19, 2006

THE Kenyan government is devising ways of reviving Uchumi Supermarket that was closed recently, the trade and industry minister, Mukhisa Kituyi, has said.

By Reuben Olita
in Nairobi


THE Kenyan government is devising ways of reviving Uchumi Supermarket that was closed recently, the trade and industry minister, Mukhisa Kituyi, has said.

Kituyi said he was awaiting a report from a committee, which is investigating the company, before unveiling the revival plans.

He said he would issue a report in Parliament on Tuesday about measures being taken to resuscitate the supermarket chain.

“I want to assure the country that we are not going to allow Uchumi to die,” Kituyi said.

Kituyi said the government would ensure that foreign companies do not buy local companies at throw-away prices.
He urged the Uchumi shareholders and other interested parties to put what had happened behind and move on.
The collapse of Uchumi, which had 17 branches countrywide, was announced a fortnight ago.

The company’s managing director, John Masterten-Smith, said it owed banks and suppliers more than Ksh3b (sh76.5b).
While suppliers were owed Ksh1.8b (sh45.9b), the retail chain was yet to pay Kenya Commercial Bank Ksh416m (sh10b) and PTA Bank Ksh475m (sh12.1b). The shareholders were left holding papers valued at more than Ksh2.6b (sh66.3b).

Last week, Kituyi told Parliament that he had set up a committee to probe the circumstances leading to the collapse of Uchumi, which is now under receivership.

On Friday, 800 former Uchumi employees who had gone for their terminal dues were only given Ksh100 (sh2,550) for the bus fare. The workers were expecting to receive Ksh20,000 (sh510,000) each as earlier promised by the receiver-manager.

The Deloitte and Touche receiver-managers also gave the staff certificates of service as well as statements showing their pension and other terminal benefits.

The workers have appealed to the government to ensure all their dues paid.

Uchumi also operates in Uganda where its business has not been affected by the events in Kenya.

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