Uchumi Supermarket has confirmed having received 700 million shillings from the government of Kenya for restocking purposes.
The retailer has also announced the kicking off of restocking of all its branches across the country after being in an economic turmoil for years forcing it to close down a number of its branches.
‘’Following the recent cash injection of 700 million shillings by the Kenyan government, we have kicked off our much-promised restocking exercise as the first step to getting Uchumi supermarkets back on track,” said Mr. Mohamed Ahmed, the Acting CEO of Uchumi Supermarket.
“Apart from replenishing stock, the money has been used to settle employee salaries and setting up new agreements with our suppliers, 99 percent of whom have backed our plans. The path to recovery has been tough and I acknowledge the board members, Suppliers, and GOK who have been part and parcel of Uchumi’s turnaround. I have a strong management team and staff behind me who have contributed immensely to this turnaround and I believe that they are able to sustain the growth momentum,” he added.
The government had promised to give Uchumi Supermarket a total of 1.8 billion shillings as part of the recovery program.
As part of the turnaround strategy for the retail giant, the Uchumi Board adopted a retail development strategy two years ago which has formed the basis of the brand’s investment and turnaround plans. As a long-term strategy, Uchumi is engaged in confidential discussions with a number of financial investors. One of the discussions is at an advanced stage and the supermarket chain hopes to secure the investment in the New Year. The process was delayed due to the prolonged election process but has picked momentum in the last few weeks.
Speaking at the re-opening, New Chief Operating Officer, and an experienced retailer, Andrew Dixon added, “Despite the difficulties Uchumi has faced over several years, the support from the public has carried the brand through and has fortified the brand’s resilience. The market environment will continue to be challenging into next year, but we’re now well placed with clear plans and a renewed level of confidence that will catalyze stronger performance and create long-term, sustainable value for all our stakeholders.”