Uchumi Supermarket Ltd chief executive Joseph Kipnge’tich has announced a revival plan for the retailer which is reeling on bankruptcy.
On Wednesday, the Kipng'etich, together with other stakeholders including key suppliers, held a joint meeting where they endorsed a plan to offset and outstanding Sh6.1 billion debt owed by the chain to suppliers.
Sources indicated that KCB and UBA, will help the embattled supermarket pay off some of its debts.
In turn, they two will take over shares in the company.
Trade PS Chris Kiptoo said the government will help in the full revival of the listed retailer.
“The government is committed in bailing out Uchumi and we will be with them in every step of the way,” he said.
However, Uchumi has been sued by some of its suppliers over non-payment.
Kenblest Group, Githunguri Dairy, StarTimes, Kapa Oil Refineries, San Giorgio Ltd and I sync Media have moved to court over the arrears.
Wow Beverages, Wazaran Ltd, Nairobi Flour Mills and professional marketing services have been enjoined in the case.
Kipnge’tich urged the suppliers who have moved to court to drop the case to enable the injection of more money into the company which will in turn help in their payment.
“We are asking the suppliers who have moved to court to kindly drop the suit so that the money we are spending in legal fees can be channeled towards a repayment programme,” he said.
The chain closed down its subsidiaries in Tanzania, Uganda and many others in the country including Nakuru, rendering many jobless.