This archive report was first published on 28 December 2019.
Choppies Supermarket's exit from the Kenyan market has hit a snag after employees declared redundant sought Sh25 million in redundancy benefits. The Kenya Union of Commercial, Food and Allied Workers (KUCFAW) filed a court case on December 28, 2019, seeking the payment of Sh26.8 million to 543 employees.
According to court orders, Choppies was directed to pay the redundancy benefits to the employees, pending the hearing and determination of the matter. The case is scheduled for January 27, 2020.
Choppies had announced its decision to close its 12 stores in Kenya due to liquidity challenges, affecting operations in Mozambique and Tanzania. The retailer had acquired Ukwala Supermarkets for Sh1 billion in 2015 as part of its expansion plan across East Africa.
Choppies served redundancy notices to 188 employees in August 2019 and another 543 staff last month. The union is also seeking to seize the travel documents of Choppies' directors to prevent them from leaving the country while the legal dispute continues.
