This archive report was first published on 8 September 2019.
Carrefour Kenya has made a significant move by repaying a Sh1.53 billion loan from its parent firm Majid Al Futtaim before its contractual maturity, as revealed in the company's 2019 half-year results.
According to the financial report, the loan was extended to Carrefour Kenya in 2016 to fund its expansion, with a repayment period of two years starting in 2018. However, the company has managed to settle all its dues ahead of schedule.
"In 2016, term loan facilities of Sh1,530 million (Sh1.5 billion) and GEL10.9 million (Sh382 million) were obtained by the Group's subsidiaries in Kenya and Georgia respectively. These facilities were paid and settled by the Group during the period prior to their contractual maturities," the report states.
Carrefour Kenya's early repayment of the loan is seen as a testament to the growing fortunes and financial muscle of its local subsidiary. The company has been expanding its presence in Kenya by opening new stores and taking over spaces previously occupied by struggling supermarket chains.
Carrefour Kenya has a total of eight branches across the country, including locations at the Junction, Nyayo roundabout, The Hub in Karen, Village Market, Two Rivers Mall, Thika Road Mall (TRM), and Sarit Centre in Westlands.
The company's growth in Kenya comes amid a competitive retail landscape, with multinational chain stores stiffening competition against local family-owned retailers.
Carrefour Kenya's sales have been on the rise, with the company registering a 71 percent jump in local sales from Sh8.11 billion in 2017 to hit Sh14 billion in 2018.
