Uchumi faces insolvency as pressure from creditors and suppliers mounts
Workers and security guards outside Uchumi Supermarkets in Eldoret town, Kenya on March 21, 2016. The outlet is among those that were closed by the retailer. PHOTO | JARED NYATAYA
Kenya’s Uchumi Supermarkets Ltd is on the verge of insolvency as efforts to negotiate a cash injection hit a snag in the first quarter of 2016. Its debt to suppliers has skyrocketed to Ksh3.6 billion ($36 million), double the Ksh1.8 billion ($18 million) quoted last year, according to the management.
“Settling a significant part of this debt requires funds outside our normal operating activities. We are working on this through disposal of land and sourcing for an investor. We, however, continue settling current supplies from our operating cash,” Uchumi chief executive Julius Kipngetich told The EastAfrican last week.
