NAIROBI, Kenya, Jul 12 – Uchumi Supermarket has announced that it is in the final stages of clinching an investor.
The retailer says an investor will be named soon once all the necessary approvals are made.
“We will announce in a few days once all the necessary approvals are finished,” said Chief Executive Julius Kipngetich.
Kipngetich hopes the investor will inject Sh Sh3.5 billion into the retailer which will partly plug the Sh5 billion debt hole the supermarket owes suppliers and financiers.
The retailer had in December 2015 announced it was looking for a strategic investor to take a controlling stake in the firm in exchange for Sh5 billion capital injection.
The move is expected to bring it back on its feet.
The retail chain, which was once the largest in Kenya, has lost market share over the years owing to bad governance that saw its former Chief Executive Jonathan Ciano and other managers axed.
The firm has so far closed its operations in Tanzania and Uganda as well as five branches in Kenya in a reorganisation exercise intended to stop financial haemorrhaging.