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Kenya

Uchumi Opens Online Portal to Verify Old Debts Amounting to Sh4. 7bn

NAIROBI, Kenya, Oct 6 – Uchumi Supermarket has opened an online portal for trade and services creditors to register their debts. 

In a statement, the retailer says the move is part of the implementation of the Company Voluntary Agreement (CVA), which has already received approval from the High Court. 

Uchumi Supermarkets CEO Mohamed Mohamed says registration of debt incurred before 2nd March 2020 through the online portal will allow the retailer to verify and audit debt.

“The CVA which was approved by the High Court directs that we verify all old debts through a transparent and sustainable process and we are asking all suppliers to register their debts within the next three weeks,” said Mohamed.

According to the CEO, the exact amount of supplier debt will be known once the verification process is completed.

As of July 2020, Uchumi owes an estimated Sh4. 7 billion in debt to over 100 suppliers. 

Uchumi says it will be using the agreement as its  blueprint to return to profitability. 

Mohamed said the agreement provides a proposed review of the restructuring of the current debt as well as the strategic overview of the business operations of the retail chain that has been undertaken by the Board and Management of Uchumi Plc and other experienced consultants.

The consultants include Owen Koimburi who was appointed as the Supervisor on March 2nd 2019.

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Already, about 121 suppliers have agreed to the Agreement.

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