Uchumi revives Lang’ata hub in new market concept
Uchumi has injected life back to its Lang’ata hub under a new market concept allowing businesses to lease out spaces.
The move is targeting farmers who sell fresh produce alongside small and medium enterprises (SMEs).
“The weekly SME Market is designed specifically for the interest of small and medium enterprises, allowing both exhibitors and visitors a like to forge new business opportunities. Serving as a platform for networking and product showcasing, the event aims to give existing SME’s a higher market presence in today’s competitive economy,” Uchumi’s CEO Mohamed Mohamed told Citizen Digital.
Vendors are allowed to sell their wares during the weekends by renting out spaces inside Uchumi Lang’ata Hyper.
Uchumi expects to derive income from renting out the spaces whose charges range from Ksh. 2,500 for smaller spaces to Ksh. 10,000 for premium spots.
“These SMEs will also have an opportunity to have their products on our shelves. Uchumi Supermarkets Plc plans to allocate shelf space for the SME products and incubate them towards growth and compliance,” the CEO added.
The new model is specific to the Lang’ata hub as it will not be replicated at any other establishments.
The retail chain has been seeking to put itself back towards growth having earned reprieve from liquidation in March last year.
Creditors voted to keep the troubled retailer open.
Uchumi has been banking on the sale of non-strategic assets including land holding to lessen its debt burden estimated at Ksh.7.7 billion as per a 2018 audit.
The chain is presently implementing a company voluntary agreement (CVA) approved by the High Court which includes partial debt forgiveness by creditors.
“It is important to note that Uchumi Supermarkets Plc was originally designed to give manufacturers and SMEs a platform. We are sticking to our roots,” the CEO added.