Uchumi Supermarkets


Uchumi Supermarkets, often referred to simply as Uchumi, is a Kenyan supermarket chain. The word uchumi means "economy" in Swahili.

Overview

Uchumi is headquartered in Kenya., Uchumi is one of a number of Kenyan supermarket chains that serve Kenya, including market-leaders Tuskys and Naivas. In June 2014, the company's assets were about US$78.8 million, with shareholder equity of approximately US$38.4 million. By April 2018 there were only Six stores in Kenya most were under Franchise.

History

The company was founded in 1975, as a public limited liability company, by three Kenyan parastatal companies: Industrial and Commercial Development Corporation, Kenya Wine Agencies Limited, and Kenya National Trading Corporation. The main objective at the time was to create outlets for the equitable distribution of commodities and to create retail outlets for Kenyan manufactures. In 1976, Uchumi's shareholders signed a management contract with Standa SPA, an Italian supermarket chain, to train Kenyans to run the new enterprise. The shares of the company stock were listed on the Nairobi Stock Exchange in 1992.
Uchumi closed down, albeit temporarily, and was placed in receivership during June 2006 after 30 years of business. It was simultaneously de-listed from the NSE. At the time, its closure was described as "one of the greatest corporate disasters in independent Kenya history". A government-led rescue plan, however, was initiated and consequently five Uchumi outlets, all in Nairobi, were reopened on 15 July 2006 under interim management and a caretaker administrator.
By January 2011, the retail chain had returned to profitability and applied to the Kenya Capital Markets Authority to re-list its shares on the NSE. Approval to re-list on the NSE was granted in May 2011 and trading in the shares of Uchumi resumed on 31 May 2011.

Ownership

, the shares of stock of the retail chain are listed on the NSE, where they trade under the symbol "UCHM". The shares are also cross-listed on the Rwanda Stock Exchange and the Uganda Securities Exchange. The company obtained regulatory approval to cross-list on the Dar es Salaam Stock Exchange, effective 15 August 2014. The six largest shareholders in the company as of April 2015 were:
RankName of OwnerPercentage Ownership
1Jamii Bora Bank15.8
2Kenya's Ministry of Trade14.6
3Paul Wanderi Ndung’u5.4
4KWAL Holdings4.3
5Equity Nominees: Ac:001114.1
6Karim Jamal2.3
716th Internationalé de Háfs1.1
8Others via the Stock Exchanges in eastern Africa52.3
Total100.00

Branches

, the supermarket chain maintained Six outlets in Kenya:

List of Branches in Kenya

List of Uchumi branches in Kenya:
  1. Eldoret.
  2. Adams Arcade Branch - Ngong Road, Nairobi
  3. Jogoo Road Branch – Jogoo Road, Nairobi
  4. Aga Khan walk – Nairobi
  5. Meru Branch – Kenyatta Road, Downtown Shopping District, Meru
In June 2015, Uchumi fired its chief executive officer and chief financial officer at the time, for "misconduct and gross negligence". In July 2015, the company hired a Nairobi-based consulting firm to probe employee theft at the retail chain. In August 2015, a new CEO was hired. In October 2015, the store chain closed down all its stores in Uganda and Tanzania, citing unprofitability. In the process, 900 former employees were laid off in both countries, of whom 400 were in Uganda.