Uchumi supermarket Sarit Center branch.[Photo/SaritCenter]
Uchumi Supermarkets is at risk of losing its space at the Sarit Center mall in Westlands, Nairobi.
This is after its lease for the space expired.
According to Business Daily, the troubled retailer is negotiating with the landlord to have the lease period extended.
Sarit Centre is building an extension that will include an additional 70,000 square feet space for its anchor tenant.
Uchumi was given the first priority to take up the enlarged space, which will mean an increase in working capital.
“It is likely that we will not take that space because it is too big, it is not viable for us,” Uchumi’s chief operating officer Andrew Nixon said.
“If the negotiations to have the current lease extended do not work out this means that we will have to look for space in upcoming developments nearby or put more investment in the Westlands Mall branch.”
Uchumi has been struggling for the past few years.