Empty shelves in several Nakumatt outlets in Uganda have sparked speculation over the financial health of the largest supermarket chain in the region.

Four outlets we visited in Kampala had stockouts of items like juices, milk, food and soft drinks from the major suppliers. Instead, the shelves were stocked with mostly Nakumatt brand items.

Nakumatt Holdings, the company that owns 63 supermarket chains in Kenya, Uganda, Tanzania and Rwanda admitted that it was facing challenges but said it was in discussion with its suppliers to sort out the payment problem.

The retailer’s business manager Neel Shah said that despite a challenging business and economic environment, the supermarket chain has been striving to meet its obligations.

“The past few months have seen us engage directly with various suppliers. Such engagements are geared at first reassuring them of our commitments to meet obligations when they fall due despite obvious cash flow challenges brought about by a mix of factors. These engagements have also focused on seeking relief and settlement rescheduling where necessary,” said Mr Shah.

The retailer said that its current overdue bill amount is not subject to public disclosure because some amounts, which are technically overdue, have also been rescheduled arising from mutual engagements with various suppliers.

READ: Cash-strapped Nakumatt seeks financial rescue

Nakumatt Holdings says it has faced a number of unforeseen challenges ranging from a depressed economy, higher operating costs and extraneous factors including enhanced risk management due to prevailing security threats.

“From the loss of income due to unforeseen demolition of our store on Thika Road in 2008, terrorism at its biggest store in Westgate in 2013, flooding at Nakumatt Ukay in May this year, coupled by higher operating costs have all played a key part in our current woes,” said Mr Shah.