Will Kenya’s loan to Uchumi breathe new life into the retail chain?
Workers at Uchumi Supermarket’s Kisii branch load goods onto a truck. The branch was closed in April. PHOTO | FILE
The Kenyan government has formed a team to evaluate the creditworthiness of Uchumi Supermarkets, after the Cabinet set conditions for a Ksh1.2 billion ($12 million) bailout that the retail chain’s management is seeking from the Treasury.
The Cabinet endorsed the rescue of Uchumi by extending a loan this month, but tasked Trade Cabinet Secretary Adan Mohamed to lead an audit into the firm’s finances to ascertain whether it is in a position to pay the money back. The Cabinet also said the loan should be backed by security.
