Uchumi Supermarkets is currently struggling to stay afloat, but the retailer expects to receive Sh3 billion from the sale of its Lang'ata branch property, which was forcefully acquired by the Kenya Defence Forces (KDF) last year.
The property, valued at Sh806.6 million, is expected to be sold to help pay the retailer's debt, which includes Sh1.3 billion owed to the government, Sh176 million to UBA Bank, and Sh115.9 million to ICDC.
According to a letter of award from the National Land Commission (NLC), the transfer of the property will be ready by end of June, allowing creditors to be notified in case of any variation to the projections.
Uchumi's Lang'ata branch sits on 3.7 acres, which the KDF forcibly acquired last year, adding a fresh twist to the ownership of the prime plot that is the subject of a court suit.
The NLC has been working on a paper to convert the land and buildings into military use since last year, but the reason for the KDF's pursuit of the land remains unclear.
Located next to Wilson Airport in Nairobi, the land was previously warned by the US government to be vulnerable to terrorist attacks due to lax security.
Uchumi also plans to conclude the sale of three acres in Kasarani for Sh401 million, which it received from Jesus Winners Ministry, but the church group has demanded a refund of the money plus interest of 24 percent if the retailer fails to close the transaction by June 2.
