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Uchumi ends contract with third party employees

Earlier the retail chain announced plans to sell two prime properties in Nairobi to improve business liquidity and finance growth.

Earlier the retail chain announced plans to sell two prime properties in Nairobi to improve business liquidity and finance growth.

NAIROBI, Kenya, Oct 30 – Uchumi Supermarkets has terminated contracts with third parties for the supply of outsourced employees as part of an ongoing staff rationalisation and right-sizing.

Effective Friday, the third parties’ 1,238 workers have been withdrawn from Uchumi stores countrywide.

Uchumi Chief Executive Julius Kipng’etich said the decision was taken in order to improve efficiency in the business.

“In the meantime we will redeploy our existing resources as part of our optimisation plan,” he said.

Kipng’etich said the organisation will implement initiatives to increase employee motivation and commitment in order to deliver value to shareholders.

Earlier the retail chain announced plans to sell two prime properties in Nairobi to improve business liquidity and finance growth.

The retail chain has offered its Ngong and Langata Road properties on a sale and lease back basis.

The firm also announced the closure of its operations in Tanzania and Uganda in reorganisation intended to stop financial haemorrhaging.

The new CEO hopes to stabilise Uchumi within three months before moving to the next step.

The retailer has already warned that its 2015 full year profit will decline by about 25 percent attributed to what the management termed as ‘challenges of working capital’.

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