Investor to inject KSh3.5 billion in Uchumi Supermarket
Soko Directory Team
Uchumi Supermarket has announced that it has found a finally clinched a strategic investor who will inject KSh3.5 billion under an equity structure. Julius Kipngetich, Uchumi Chief Executive, however disclosed that the details await regulatory approval before it is officially announced. “We have so far received KSh500 million from the government and with the injection from the investor, we are now ready to restock our stores in the next 90 days. Our franchise model of business will also begin in those 90 days,” says Kipngetich. “We are lucky we have assets which we are planning to liquidate according to our needs. Everything has been planned and we will announce in due course.”
As at 31st December 2016, Uchumi owed its suppliers Ksh 196,359,153.
In an interview with the Standard Newspaper, the CEO says, “If we raise Sh1.3 billion from Government and at least Sh3.5 billion from potential investors, we will end the problem of Uchumi.”
Trade PS Chris Kiptoo says,“The problem with Uchumi now is not about strategy or people but just financial capital. Once we have that money, the problem will be solved because it has nothing beyond just having the cash to restock.”
