Uchumi Supermarkets

Overview

Uchumi is headquartered in Kenya. As of September 2014, Uchumi was one of a number of Kenyan supermarket chains that serve the region, including market-leader Nakumatt, Tuskys, Ukwala, and Naivas. In June 2014, the company's assets were about US$78.8 million (KES:6.885 billion), with shareholder equity of approximately US$38.4 million (KES:3.357 billion).

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 (KWAL), 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 (NSE) 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

As of May 2014, 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:

Branches

As of November 2015, the supermarket chain maintained 24 outlets in Kenya:

Branches in Kenya

List of Uchumi branches in Kenya:

1. City Square Hypermat – Aga Khan Walk, Nairobi
2. Langata Hypermat – Langata Road, Nairobi
3. Koinange Branch – Monrovia Street, Nairobi
4. Capital Centre Hypermat - Mombasa Road, Nairobi
5. Ngong Hypermat – Ngong Road, Nairobi
6. Sarit Hypermat – Sarit Center, Westlands, Nairobi
7. Tajj Mall Hypermat - Embakasi, Nairobi
8. Adams Arcade Branch - Ngong Road, Nairobi
9. Buruburu Branch – Buru Buru Housing Estate, Nairobi
10. Jipange Branch – Thika Road, Nairobi
11. Jogoo Road Branch – Jogoo Road, Nairobi
12. Nairobi West Branch – Nairobi West Shopping Center, Nairobi
13. Ongata Rongai Branch – Ongata Rongai, Nairobi
14. Westlands Branch – Westlands, Nairobi
15. Eldoret Branch – Muliro Road, Downtown, Eldoret
16. Eldoret-Sugarland Branch – Sugarland Building, Oloo Street, Eldoret
17. Embu Branch – Cylet Plaza Building, Kubukubu Road, Embu
18. Karatina Branch – Karatina, Nyeri
19. Kericho Branch - Kericho
20. Meru Branch – Kenyatta Road, Downtown Shopping District, Meru
21. Kisii Branch – Kisii
22. Nakuru Branch – Mosque Road, Downtown, Nakuru
23. Juja Branch - Thika-Nairobi Highway, Juja
24. Kisumu Branch - Kisumu
25. Limuru Branch - Limuru (In development)
26. Naivasha Branch - Naivasha (In development)
27. Ukunda Branch - Ukunda (In development)

Closure of non-Kenyan stores

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 counties, of whom 400 were in Uganda.