The troubled Uchumi supermarket is back in the news again. Uchumi has laid down 253 employees in a move that is expected to cut down cost of operation.
Further the chain supermarket has shut down branches which are Taj Mall in Nairobi, Kisii, Nakuru, Eldoret and Embu. In 2000 Uchumi supermarket had over 2,000 employees; the number has dropped to below 1,500.
Uchumi CEO Dr Julius Kipng’etich formally of KWS says that the move will reduce operational cost and save at least Sh. 40 million. ‘Their closure will enable us channel our resources to fewer branches and optimize operation for maximum gain,’ Said Dr Julius.
Last year the company was forced to shut down its branches in Tanzania and Uganda due to loss they were making. The company has more debts than its assets, the debts stands at Sh. 6.2 billion while the company itself is worth Sh. 6.1billion.
Late last year, CEO Dr. Julius announced plans to sell Lang’ata and Ngong’ Road hypermarkets to free up some cash.