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.
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“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.
