A recent series of events has led to Cabinet Secretary Phyllis Kandie facing intense scrutiny. According to reports, her statements regarding the government's commitment to the rights issue of Uchumi Supermarkets have come under fire.
Kandie had stated,
"The government is committed to take up our full entitlement in the rights issue, up to a tune of Sh264 million. I urge all shareholders to take up their rights,"
however, this claim has been disputed.
Bomas Project Controversy ¶
The controversy surrounding the 50B Bomas Project has also implicated Kandie. As reported by Citizen, the project was marred by allegations of improper procedures and favoritism towards certain firms. Tenders for the project were cancelled just 24 days after they were advertised, with no explanation given.
Prof Yash Pal Ghai, a renowned constitutional lawyer, had written to the Bomas general manager questioning the lack of public consultation and environmental impact assessment for the project. The project's feasibility study was expected to be completed, but its progress has been slow.
Uchumi Supermarkets' Financial Status ¶
Kandie's handling of Uchumi Supermarkets' financial situation has also been called into question. Despite her assurances, the company's true financial status remains uncertain. The Daily Nation reported that Uchumi was negotiating a Sh500 million overdraft to pay suppliers, sparking concerns about the company's cash flow problems.
The fate of the Sh896 million raised through a rights issue remains unclear, leading to allegations that Kandie misled the government and the public about Uchumi's financial status.
As the situation unfolds, Kandie faces increasing pressure to address these concerns and provide clarity on her involvement in the Bomas Project and Uchumi Supermarkets' financial dealings.
