This archive report was first published on 9 July 2019.
On July 9, 2019, Uchumi Supermarkets was facing a major crisis as it struggled to pay rent for its flagship Buru Buru branch in Nairobi, leading to a potential eviction.
The retail chain, which was once a major player in the Kenyan market, had accumulated Sh27.7 million in rent arrears, prompting the landlord, Fairlane Supermarkets Ltd, to seek eviction through the High Court.
According to lawyer Joe Murage, representing Fairlane Supermarkets Ltd, Uchumi had ceased all commercial activities at the premises in November 2018 but refused to yield possession back to the landlord.
‘Uchumi ceased all commercial activities at the premises in November 2018 yet refuses to yield possession back to Fairlane Supermarkets Ltd,’ Murage said.
The building that Uchumi has refused to vacate is charged to Standard Chartered Bank for a loan of more than Sh100 million, which the lender says it intends to call up.
‘Fairlane Supermarkets Ltd stands to lose ownership of its property at auction, owing to the massive loan and Uchumi’s failure to pay rent for 28 months,’ argues the landlord.
Uchumi has been struggling to pay its debts, with the company owing suppliers Sh3.6 billion and banks Sh2.5 billion, despite having a total asset base of Sh6.1 billion.
