Uchumi Evicted From Its Headquarters Over Rent Arrears

Uchumi Supermarket management has not been able to access their headquarters at Industrial Area since October 2.

This follows a move by the landlord, the Kenya National Trading Corporation (KNTC), to lock out the staffers stationed at the premises over unspecified amount of rent arrears. Over 50 private guards have been placed at the premises to prevent Uchumi staffers from accessing it.

Consequently, Uchumi has filed a petition seeking to order the landlord to let them in the premises.

In one of the Suit at the High Court, Uchumi was directed to serve KNTC and come back for directions on October 22.

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The retailer has been in another court battle with Githunguri Dairy Farmers Co-operative Society over Ksh44.8 million. In that case, they obtained orders barring all creditors from taking any action against them.

Uchumi therefore says that KNTC acted against the court order.

“The continuing closure of the company’s headquarters is severely hampering our operations. Our servers remain inoperative, effectively preventing the business from tracking and effecting payments as and when they fail due or carrying out other administrative duties that are critical to the company as a going concern,” reads part of Uchumi’s petition.

So far, seven creditors are battling to dispose Uchumi property to reclaim millions owed to them by the supermarket.

Among them is UBA Bank which is owed Ksh172 million, Uchumi’s staff provident fund board of trustees seeking to reclaim Ksh122.7 million. Chandaria Industries is owed Ksh68.7 million whereas Interconsumer Products Ltd seeks Ksh38.2 million. Tropical Brands Africa wants over Ksh35 million, Equatorial Nut Processors Ltd is owed Ksh21.3 million while Professional Marketing Services Ltd is owed Ksh4 million.

In total, Uchumi owes creditors over Ksh506 million.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email

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