NAIROBI, Kenya, July 15 – Kenya’s former retail giant Uchumi Supermarket is facing legal and financial headwinds as it plans to bounce back from liquidation.
At the heart of the battle is a Sh2.8 billion parcel of land in Kasarani, Nairobi, which the supermarket chain lost to the Kenya Defence Forces (KDF) after the court ruled in favour of the latter.
The retailer aimed to sell the prime parcel of land to raise capital as part of the Company Voluntary Arrangement (CVA) plan that aimed to restructure debt and revive the retailer.
“In the matter between KML and KDF, the company holds the view that it has very strong grounds for appeal. That the Learned Judge, in arriving at his decision ignored wholly the weight of the evidence that was adduced specifically that an investigation was conducted by the Office of the Attorney General and the Director of Public Prosecution who confirmed Kasarani Mall Limited has a valid Title,” Uchumi Supermarket insolvency practitioner Owen Koimburi said in a legal document.
Uchumi’s recovery plan has also been hamstrung by a legal dispute with tenant hotspots over the planned conversion of Langata Hyper into a mall. Currently, the mall hosts 10 tenants after China Square began lease payments last December.
Below-par revenue collections have also affected the retailer, which raised Sh111.08 million year-to-date (YTD) 2025, which was below the 22 percent target.
As of now, the retailer owes Kenya Commercial Bank (KCB), United Bank of Africa (UBA), Co-operative Bank, Kenya Development Corporations (KDC), and the Government of Kenya (GoK) Sh2.9 billion.
It also owes staff Sh521.7 million, pensions Sh107.1 million, and the Kenya Revenue Authority (KRA) Sh275.4 million.
