Years after entering a Company Voluntary Arrangement (CVA), Uchumi Supermarkets is still struggling to clear its debts, leaving critical stakeholders unpaid and raising fresh concerns over transparency in its recovery efforts.

The retailer still owes Sh31 million to trade creditors, Sh2 million to landlords, and Sh8 million in staff salary arrears, with an additional Sh1 million outstanding to regulatory bodies. While management provides monthly updates, the CVA Monitor, Owen Koimbura, reported “limited visibility” on these payments, fuelling doubts about accountability in the repayment process.

Even as some creditors remain in limbo, Uchumi has made progress in settling certain obligations.

To date, it has disbursed Sh214.86 million, fully clearing accounts with KCB Bank (Sh62.36 million), UBA Bank (Sh5 million), Cooperative Bank (Sh1.5 million), pension contributions (Sh1 million), legal fees (Sh140 million), and payments to the Monitor (Sh5 million). But inconsistencies in how funds are disbursed have further strained trust.

Notably, UBA Bank received Sh5 million from the Lang’ata Hyper sale, more than triple the Sh1.5 million initially planned under the CVA without prior notification to the Monitor.  “Details of this arrangement were not shared with the Monitor office beforehand,” Koimbura noted in his report to the receiver manager and stakeholders, tabled on March 14, 2025. Such deviations from agreed repayment plans have heightened frustrations among creditors.

A major roadblock to Uchumi’s financial commitments is the stalled sale of a 17-acre parcel in Kasarani, Nairobi.

The prime property, located near the Thika Superhighway, is embroiled in a long-running ownership dispute with the Kenya Defence Forces (KDF), which has laid claim to the land and set up camp on it.

While KDF allowed Uchumi to sell only three acres, raising Sh400 million the retailer had banked on selling the entire 20-acre property for Sh2.8 billion to Jewel Complex Limited, a company linked to Jesus Winners Ministry.

With KDF refusing to vacate the remaining 17 acres and government approvals still pending, the deal is in jeopardy. The church group that bought the three acres has already threatened legal action, demanding a refund of Sh401 million plus interest if the broader transaction collapses.

The proceeds from the land sale are crucial for settling creditor repayments and stabilising Uchumi’s operations. Without it, the retailer faces an uphill battle in meeting its financial obligations.

Uchumi’s CVA is officially set to conclude on June 30, 2025, but repayments for preferential and unsecured creditors extend into a sixth year, ending in June 2026.

The timeline for debts owed to the Kenya Development Corporation (KDC) and the Government of Kenya, amounting to more than Sh3 billion is even longer, stretching over 10 years from 2026.

This misalignment between the CVA’s original terms and Uchumi’s actual payment commitments has left creditors uncertain about when, or if, they will receive full compensation.

With trust in the retailer’s ability to honour its obligations already frayed, further delays could push Uchumi’s fragile recovery into deeper turmoil.