Troubled Uchumi’s bid to dispose prime property blocked
Uchumi Supermarkets has come out fighting over its multi-billion shillings Lang’ata Hyper outlet saying it holds a valid title deed to the property.
Company Secretary Mr John Wambugu said that they have been the owners of the property for the past 19 years, having purchased the land and put up a multi-billion shillings operation.
“The Kenya Airports Authority’s warning to block the intended disposal of the property has caused us concern. It bars interested buyers from leasing or buying the property but we wish to affirm that we own the property,” Mr Wambugu said.
The giant supermarket chain added that all buyers would be at liberty to scrutinise all ownership papers before entering into a binding agreement with Uchumi managers.
“Uchumi has enjoyed full use of the property for the past 19 years and has developed the property that it later used to secure financing from various financial institutions,” Mr Wambugu added.
Uchumi Supermarkets had sought a buyer for the property to help it raise funds to refinance its operations and ease debts to suppliers.
MOVE TO COURT
But KAA also lodged a claim over the prime property saying the land on which the supermarket is built belongs to them.
“It has come to the attention of Kenya Airports Authority that Uchumi Supermarkets, who purport to own the land, is trying to sell, lease or deal in one way or another with the parcel of land. Any person entering into any agreement or arrangement, whether for sale, lease or otherwise with any person other than KAA does so at his own peril,” said a notice by KAA published in the local dailies.
KAA said it would move to court to protect its property if Uchumi goes ahead with the intended sale.
But Mr Wambugu castigated KAA’s statement saying the parcel was private property that had been legally purchased by Uchumi which proceeded to acquire the title.
“We have also contacted the National Land Commission who have confirmed in writing that the parcel of land belongs to Uchumi Supermarkets,” said Mr Wambugu.
Uchumi Chief Executive Officer Julius Kipng’etich has effected a move to reduce staff and close down non-performing branches to cut down on debt and wage bill. The entity also intends to sale off two of its branches to raise fresh capital for operations.
Last month the retail outlet announced the closure of its operations in Tanzania and Uganda in a drastic reorganisation aimed at resuscitating its operations.
The turn around of events at Uchumi has been well received by financial experts who have described it as prudent and strategic move to ease debt.