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NEWS & CURRENT AFFAIRS

The Nairobian

Troubled Uchumi's creditors to know fate of their billions

Business

By Brian Ngugi | Feb 23, 2025

Creditors of troubled Uchumi Supermarket are set to learn the fate of their billions in a virtual meeting scheduled for March 17, 2025.

The landmark meeting, which aims to address pressing financial concerns, comes after the supermarket chain entered a company voluntary arrangement (CVA) in a bid to restructure its debts.

Uchumi, once the leader in Kenya’s retail sector, has faced significant challenges over the past decade leading to its financial collapse.

“You are hereby notified that a virtual meeting of the creditors and stakeholders of Uchumi Supermarket shall be held on March 17 at 10am,” said a notice signed by CVA supervisor Owen Koimburi and board chairman John Karani.

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The company has been grappling with declining sales, stiff competition from emerging supermarket chains, and mismanagement.

Additionally, rising operational costs and a failure to adapt to changing consumer preferences have exacerbated its financial woes. By 2021, Uchumi had accumulated substantial debts, leading to its eventual decline.

The agenda for the upcoming online gathering includes an update on debt restructuring, negotiating with suppliers and future as Uchumi eyes a turnaround.

“ To participate in the meeting, all creditors and stakeholders must complete the registration process not later than February 28, 2025, the notice said.

During the meeting Uchumi officials will give a presentation on the company’s operational and financial performance. Creditors will receive updates on the status of CVA debt repayments.

Additionally, the company’s auditors will present the audited financial statements, providing creditors with insights into the supermarket’s fiscal health. Stakeholders are hopeful that the upcoming meeting will provide clarity on their investments.