This archive report was first published on 23 September 2019.
September 23, 2019, marked a day of uncertainty for investors in Uchumi Supermarkets, a Nairobi Securities Exchange-listed retailer. The company had missed its February deadline to publish its half-year results for the period ending December 2018, and despite receiving a five-month extension, it remained silent on its financials for the year ending June 2018.
Uchumi's acting chief executive, Mohamed Mohamed, had cited the company's 'turnaround' activities as the reason for the delay. However, experts have cautioned that the prolonged silence is hurting investor confidence and that the Capital Markets Authority (CMA) must take action to protect investors.
Analysts have pointed out that listed companies are required to publish their accounts before a certain deadline, allowing investors to make informed decisions. A delay in publishing these accounts can signify challenges with the audit and may reflect negatively on the company's management.
Actions the CMA could take include suspending the retailer from trading on the NSE or penalizing it. In other markets, regulators have suspended trading in securities pending clarification of a company's financial position.
Uchumi is currently facing Sh900 million winding-up suits in court and has struggled to raise new capital to fund its operations. The retailer's uncertainty has led to a significant drop in its stock price, reaching a 52-week low of 29 cents.
