UBA Kenya lends Uchumi a short loan of Ksh 250M to pay suppliers

United Bank for Africa-Kenya has approved a short term credit facility of Ksh 250 Million for Uchumi Supermarkets to enable the retailer pay its Kenyan suppliers.

Three months ago when Uchumi also borrowed Ksh 500 from Kenya Commercial Bank also to pay some of its suppliers. This comes at a time when Uchumi has already been dragged to court by some of its suppliers from Kenya and Uganda who are seeking a total of Ksh 3.6 Billion.However, Uchumi says it needs more time to dispose some of its assets in order to raise the required amount for expansion and paying the debts.

Related Post; Bidco Moves to court, blocks Uchumi Bankruptcy case over unpaid arrears

Related Post; Supplier moves to court, wants Uchumi winded up

“We acknowledge that we cannot rely on bank loans for too long and for this reason we are exploring other sources of funds such as disposal of some assets, engaging a potential investors,” Julius Kipng’etich, Uchumi CEO told The Business Daily.

 “We however continue settling current supplies from our operating cash as well as the savings generated from the closure of some of our branches,” he added.
Share Price Movement
At the Nairobi Securities Exchange, Uchumi Supermarkets Ltd closed at Ksh 5.10 on Friday 1st April. This 2.00% above its ALL TIME LOW of Ksh 5.00 as you can see from the graph below.Uchumi ytd
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