Uchumi receives loan from KCB

Uchumi Supermarkets Limited has announced that it has finalized a Ksh 500 million term loan arrangement with Kenya Commercial Bank to pay outstanding supplier debts.

Addressing investors in Nairobi on Tuesday, acting Chief Finance Officer Sam Oduor said the retail chain had also commenced the process of selling a 20-acre piece of land in Kasarani, Nairobi to improve business liquidity.

Oduor also intimated that Uchumi Supermarkets was also in the process of rationalizing its supply chain in order to optimize its stockholding.

Oduor added that they were also was reviewing its internal operating processes and procedures in order to seal loopholes that led to revenue leakages.

Oduor also announced that the board had suspended expansion to facilitate review of the profitability and potential of each branch in the network.

Further, Oduor said the organization was focusing on improving governance and would take drastic action on culprits of future infringements on its governance and ethics policies.

He said the main board had been reconstituted with the inclusion of three new members adding that with the ongoing recruitment the newly constituted top team should be in place latest 1st October 2015.

Speaking during the forum, Board Member James Murigu, standing in for Chairperson, Khadija Mire, admitted that the retail chain was still experiencing supply challenges but expressed confidence the situation will improve soon.

Jamii Bora Bank CEO, Sam Kimani, who sits on the board said the bank bought a 16% stake in Uchumi because the potential to grow and business synergies were far greater than current challenges.

“With over 800,000 customers and over 3000 suppliers we see a big opportunity to partner with Uchumi for our mutual growth,” said Kimani.

The briefing was called to update investors, investment analysts, media and stockbrokers on progress made in getting Uchumi back on track following mismanagement that led to the sacking of Jonathan Ciano a few weeks ago.