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Tanzania wants Kenya to pay Sh2.3 billion Uchumi Supermarket debt
By Dominic Omondi and Philip Mwakio
Published: Feb 1st 2018 at 23:20, Updated: February 1st 2018 at 23:21
Stranded workers outside Uchumi Supermarket Kisii town branch after it was closed in March 2016. The retailer had shut its Tanzanian and Ugandan subsidiaries a year earlier. [File, Standard]
The frosty trade relations between Kenya and Tanzania could get worse after the latter demanded payment of a Sh2.3 billion debt owed by Uchumi Supermarket.
Tanzania wants the Kenyan Government to take responsibility for the debt to its suppliers racked up by the struggling retailer’s Tanzanian subsidiary that was shut in 2015.
ALSO READ: Uchumi denies sacking Ciano
This was one of the top agenda of a four-day bilateral trade meeting between the two countries held in Mombasa.
The meeting had been called to discuss the waning relations between Nairobi and Dar es Salaam but saw the issue of Uchumi and Nakumatt supermarkets sneaked into the agenda. Uchumi shut its stores in Tanzania and Uganda in 2015 as it sought to stem further losses.
But the NSE-listed retailer left behind a huge trail of debt owed to suppliers. At the Mombasa meeting, Kenya through International Trade Principal Secretary Chris Kiptoo, however, outrightly rejected the demand by the Tanzanian delegation.
Dr Kiptoo said while the Government has about 14 per cent stake in Uchumi, it has no control over the supermarket.
“Uchumi is listed at the Nairobi Securities Exchange and regulated by Capital Markets Authority,” said the PS. The Government in December last year gave Uchumi Sh700 million which the retail chain used for restocking.
ALSO READ: Club officials troop to Tanzania for juju
Kiptoo said they agreed to come up with a national trade policy which would ensure that all suppliers were paid within the shortest time possible.
“There should be a code of practice between the retailer and supplier. Any person supplying perishable goods should be paid within 14 days and not wait 30 days to get paid,” he said.
The management of Uchumi and Nakumatt supermarkets are reported to have briefed the senior officials from the two governments on the way forward and the road map for settling the outstanding debt.
Tanzania wants Kenya to pay Sh2.3 billion Uchumi Supermarket debt
MY TAKE
Mbele ya Magu mtalipa tuu...
Tanzania wants Kenya to pay Sh2.3 billion Uchumi Supermarket debt
By Dominic Omondi and Philip Mwakio
Published: Feb 1st 2018 at 23:20, Updated: February 1st 2018 at 23:21
Stranded workers outside Uchumi Supermarket Kisii town branch after it was closed in March 2016. The retailer had shut its Tanzanian and Ugandan subsidiaries a year earlier. [File, Standard]
The frosty trade relations between Kenya and Tanzania could get worse after the latter demanded payment of a Sh2.3 billion debt owed by Uchumi Supermarket.
Tanzania wants the Kenyan Government to take responsibility for the debt to its suppliers racked up by the struggling retailer’s Tanzanian subsidiary that was shut in 2015.
ALSO READ: Uchumi denies sacking Ciano
This was one of the top agenda of a four-day bilateral trade meeting between the two countries held in Mombasa.
The meeting had been called to discuss the waning relations between Nairobi and Dar es Salaam but saw the issue of Uchumi and Nakumatt supermarkets sneaked into the agenda. Uchumi shut its stores in Tanzania and Uganda in 2015 as it sought to stem further losses.
But the NSE-listed retailer left behind a huge trail of debt owed to suppliers. At the Mombasa meeting, Kenya through International Trade Principal Secretary Chris Kiptoo, however, outrightly rejected the demand by the Tanzanian delegation.
Dr Kiptoo said while the Government has about 14 per cent stake in Uchumi, it has no control over the supermarket.
“Uchumi is listed at the Nairobi Securities Exchange and regulated by Capital Markets Authority,” said the PS. The Government in December last year gave Uchumi Sh700 million which the retail chain used for restocking.
ALSO READ: Club officials troop to Tanzania for juju
Kiptoo said they agreed to come up with a national trade policy which would ensure that all suppliers were paid within the shortest time possible.
“There should be a code of practice between the retailer and supplier. Any person supplying perishable goods should be paid within 14 days and not wait 30 days to get paid,” he said.
The management of Uchumi and Nakumatt supermarkets are reported to have briefed the senior officials from the two governments on the way forward and the road map for settling the outstanding debt.
Tanzania wants Kenya to pay Sh2.3 billion Uchumi Supermarket debt
MY TAKE
Mbele ya Magu mtalipa tuu...
