Cash-strapped Uchumi Supermarket Plc has taken a cautious approach to its recovery under a court-approved Company Voluntary Arrangement (CVA) as it approaches its 50th anniversary.
A March 14, 2025, report by CVA Monitor Owen Koimburi states that Uchumi currently operates two locations, Langata and Unicity, and is actively working to strengthen its brand and financial position.
Revived Retail Spaces
- The Langata branch has been partially transformed into a mall with 10 tenants, including China Square, which commenced operations in June 2024. Their lease contributes KES 5 million monthly, reinforcing the site’s financial viability.
- The Unicity branch, reopened in September 2024, is geared toward distribution, with bakery optimisation and a potential wholesale model pending the rollout of an ERP system.
Creditor Settlements & Compliance
According to the report, Uchumi has actively advanced its recovery. The company settled debts with KCB, Co-operative Bank, and UBA Bank, paying UBA Bank KES 5 million, surpassing the CVA’s planned KES 1.5 million.
Uchumi also secured full compliance with the Kenya Revenue Authority, obtaining a tax compliance certificate. Furthermore, it cleared staff salary arrears, legal fees, and pension dues while actively re-engaging with suppliers.
| # | Creditor/Item | Amount (KES) | Comments |
| 1 | Legal Fees and Other Preliminary Expenses | 140,000,000 | Fully Paid |
| 2 | KCB | 62,364,486 | Fully Paid |
| 3 | Trade Creditors & Landlords | ||
| 4 | Staff Salary Arrears | 22,000,000 | Payment process ongoing |
| 8,000,000 | Payment process ongoing | ||
| 5 | Monitor | 5,000,000 | Fully Paid |
| 6 | UBA | 5,000,000 | Fully Paid |
| 7 | Cooperative Bank | ||
| 8 | Regulatory Bodies | 1,500,000 | Fully Paid |
| 1,000,000 | Payment process ongoing | ||
| 9 | Pension | 1,000,000 | Fully Paid |
| 10 | Issues Encountered | USP entered a compromise with UBA Bank over the Langata Hyper sale, where the bank received Kshs 5 million against the planned Kshs 1.5 million under CVA. | |
Operational Challenges & Opportunities
Despite progress, two property sales—including a disputed 17-acre parcel involving KDF and Sidhi Investments—remain unresolved in court.
The Monitor emphasised, “Conclusion of this matter will further boost creditors’ morale to support USP now and in the future.”
Despite stiff competition and shifting consumer habits, Uchumi shows signs of resurgence with ERP upgrades, improved governance, and six-month sales exceeding KES 60 million.
CMA’s Stand & Stock Status
While Uchumi requested a suspension from the Nairobi Securities Exchange, the Capital Markets Authority (CMA) declined, stating that “the Company cannot be allowed to fail,” and underlining the necessity of implementing the CVA successfully.
Looking Ahead
With the CVA’s term ending on June 30, 2025, Koimburi recommended prompt court ratification of an amended CVA to accommodate a 10-year debt repayment plan beginning in 2026. The report advises continued cooperation from all stakeholders:
“Creditors and shareholders should ensure this status is not taken for granted… a lot of consideration is required to ensure that everyone is carried along.”
