Chinese retailer boosts Uchumi earnings amid Sh8.3b debt woes
Business
By
Macharia Kamau
| Nov 12, 2025
The leasing of Uchumi Supermarket’s Lang’ata Hyper premises to China Square has lifted the struggling retailer’s earnings, but this is not enough to lift it out of its protracted financial woes.
China Square now accounts for more than 80 per cent of the rental income earned by the listed former retail giant after setting up an outlet at Uchumi’s Lang’ata Hyper premises.
According to quarterly disclosures for the period to September 2025, the Chinese firm pays a monthly lease fee of Sh5 million for the space, which is 84 per cent of the Sh5.94 million that Uchumi earns from different tenants every month at what was once one of its largest and key retail spaces.
In the nine months to September, Uchumi’s income from dealing in other businesses, including rental income, stood at Sh62.74 million, having grown from Sh13.54 million in 2024.
It had the impact of growing its total income to Sh90 million in 2025 from Sh29 million in 2024. This is, however, still a paltry amount when pitted against the Sh8.38 billion that Uchumi owes its creditors, including staff, suppliers and lenders.
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Ucumi in the report noted that “other income (of Sh62.74 million in the year to December 2024) materially supported results (in 2024); with China Square being a major contributor to the revenue.”
The Chinese retailer opened the outlet in June last year, and according to a recent report by Uchumi, it began lease payments in December 2024, which have been significant in supporting Uchumi’s earnings.
In an earlier report, Uchumi noted that leasing the property to China Square has been key in “generating consistent income and safeguarding its long-term value.”
Uchumi, which was once a poster child for retail success, has for years consistently posted losses, with its worst having been in 2015, when it reported a loss of Sh3.4 billion.
Its physical presence has also thinned and is now largely dependent on leasing space. In its annual report, it said selling directly to major clients has remained a key revenue stream even as it lost its retail business, as it shut down its outlets.
“Corporate business registered encouraging growth and contributed positively to the Company’s top-line. That business segment involves direct sales to institutions and bulk buyers and has proved to be more resilient compared to traditional retail outlets,” said Uchumi in the annual report.
The company has in the past hinged its survival and also payment of some of its debts to creditors on the sale of a 17-acre piece of land in Kasarani that it claimed ownership of.
The land, valued at Sh2.3 billion, was, however, taken over by the Kenya Defence Forces (KDF) in 2020 and has since then been subject to a court case. The High Court in May this year ruled in favour of KDF. Uchumi has since appealed the ruling.
“The Company was actively engaged in litigation against the KDF over the Kasarani Mall Ltd’s Investment Property. The success of the CVA is largely hinged on the disposal of the asset. The Court on 19th May, 2025 delivered a judgment against the Company,” said Uchumi in the report.
“Orders were issued for the cancellation of the Company’s title. An appeal was lodged against the Judgement, and the board of directors strongly believes that there exists a high chance of success.”