Reprieve for Uchumi Supermarkets as suppliers agree to convert Sh1.8 billion debt into equity

Uchumi Supermarket, Embu branch, which was closed on March 21, 2016 as part of cost cutting. The supermarket's suppliers have agreed to an out of court settlement with the retailer. (PHOTO: JOSEPH MUCHIRI/ STANDARD)

Uchumi Supermarkets’ suppliers have agreed to an out of court settlement with the retailer. Both parties have now agreed to a proposal to convert Sh1.8 billion which is part of Sh3.6 billion owed to suppliers into equity.

The deal, which was brokered by the Ministry of Trade and Industrialisation yesterday, under the guidance of Principal Secretary in the State Department of Trade Chris Kiptoo, also saw the suppliers commit themselves to be supplying Uchumi with new stock.