Julius Kipngetich. [Photo/the-star.co.ke]
Uchumi CEO Dr Julius Kipngetich has resigned, according to a letter by the Board of Directors signed by the chair Dr. Catherine Ngahu dated 29 November 2017.
Dr. Kipng'etich has been at the helm of the state owned Uchumi for two years now since November 2015 and has reduced Uchumi's net loss by 39% to 1.7billion.
In his tenure, several Uchumi branches have been closed. Uchumi also sold its Ngong Hyper and Lang’ata Hyper properties on a buy-lease back arrangement as a turnaround strategy to stir the company back to profitability.
He was appointment after the sacking of Dr. Jonathan Ciano alongside other directors who had brought the company out of receivership but accused of insider dealings and mismanagement.
Amid this, Uchumi shares hit a shocker down by 9.3% to sh. 3.90. In August this year, Uchumi shares had continued an upward rally amid speculations of a bailout from a strategic investor.
Dr. Kipng'etich joined the struggling retailer from Equity bank. He initially served as Chief Executive officer of Kenya wildlife service before joining Equity Bank.
“The Board of Directors has commenced the process of identifying a suitably qualified successor to the Chief Executive Officer and will, in due course, unveil the identified successor,” Uchumi said in the statement.
The Board has picked Chief Finance Officer Mohammed Ahmed Mohammed in acting capacity and has reiterated its commitment to ensuring the company returns to profitability.
The retail sector has been on the suffering trend with the market leader, Nakumatt , seeking bailout from Tuskys Supermarket.