Kenya to pay former Uchumi employees, suppliers sh12b

The Kenyan Government has agreed to a negotiated settlement of the outstanding payments to Ugandan suppliers and former workers of its supermarket chain Uchumi.

This follows Government of Uganda's intervention to resolve the Uchumi impasse, following the closure of all the 5 branches of the supermarket in Uganda.

A statement from the trade ministry indicates that the agreement was reached upon in a bi-lateral meeting between the two governments in Nairobi. The Ugandan delegation was led by the Permanent Secretary of the Ministry of Trade, Industry and Cooperatives, Julius Onen, and the Kenyan Government representatives were led by the Political and Diplomatic Secretary in the Ministry of Foreign Affairs and International Trade,Tom Amolo.

The meeting agreed to form an inter-Governmental Committee to address all issues on non-paid claims in Uganda.  The Committee will comprise of ten members with each side to have five (5) representatives headed by a Principal/Permanent Secretary. The committee will develop a time frame for settlement of claims, review and verify all claims from suppliers, and propose recommendations on possible ways of settling claims.

Court bailiffs on behalf of Ugachick closed UCHUMI Garden City branch over a debt of 185,107,800/=. PHOTO: Juliet Kasirye

 The meeting also recommended that the bankruptcy petition by Uchumi Supermarket be withdrawn immediately. The closure of operations of Uchumi in Uganda left widespread cries from its creditors who include suppliers of goods and services to the 5 branches, employees, landlords, electricity and water suppliers, kiosks and other businesses sub-letting from Uchumi Management.

During a meeting of representatives of the Ugandan and Kenyan governments in Kampala on friday, Amelia Kyambadde, the Trade, Industry and Cooperatives minister unveiled the Ugandan team which comprises of Amb.Julius Onen (trade ministry), Gideon Badagawa (private sector foundation Uganda) and representatives of the Uchumi workers and Suppliers.

The Kenyan team which was headed by Amb. Geoffrey Okanga, the Kenyan high commissioner to Uganda and includes representatives of government of Kenya and Moses Olwoch, a Uchumi supermarket executive.

Kyambadde urged the former employee to submit valid claims to the committee for verification. She also noted that the defunct Uchumi Uganda limited owes former employees an estimated sh4b and an additional sh8b is owed to suppliers.