Court stops landlords, creditors from auctioning Uchumi

NAIROBI, KENYA: Uchumi has got temporary relief from sale of its Langata land by United Bank of Africa (UBA) as well as landlords seeking to kick out the ailing retailer out of its headquarters off Nanyuki Road.

High Court Judge Mary Kasango ordered that pending determination of a case seeking to wind up the retailer, its land and outlets be spared the hammer.

“Upon hearing the counsel of the petitioner, creditors Crown Industries, counsel for UBA Bank, Counsel for Euromat and Insink Solutions Limited, it is hereby ordered that a stay is hereby granted on all legal proceedings pending before other courts,” Justice Kasango said.

Githunguri Dairy Farmers Co-operative Society, milk processor has filed a petition seeking to wind up Uchumi Supermarkets for the second time in two years.

Headquarters

The retailer has lost a series of outlets to competition and was on the brink of being kicked out of its headquarters by Kenya National Trade Corporation, but will now breathe a sigh of relief as it buys time to save the company.

Uchumi lost its Ongata Rongai branch to a Botswana retailer while some, like Uchumi’s Koinange Street branch near Anniversary Towers, have lost stock to auctioneers.

The retailer, once a real estate owner, can now only operate in its premises at the mercy of landlords. Most landlords have opted to eject the retailer for non-payment of rent.

In Mombasa, Makini Auctioneers raided its branch on Moi Avenue in April and made away with goods over Sh12 million rent areas.

In Kisumu, Pambo Auctioneers made an attempt to sell the retailer’s property at West End Mall over rent arreas before reaching an uneasy truce with the landlord.

The supermarket has lost over 25 branches after it exited prime Sarit Centre and Westlands branches. Capital Centre branch on Mombasa Road was taken over by another supermarket chain.