Listed retailer Uchumi Supermarkets has posted its first operating profit in more than a decade in the year ended June 2025, a shift that triggered a sharp rally in the company’s share price and renewed scrutiny of its restructuring progress.
- •The company reported an operating profit of KSh 8.8 million, from a KSh 49.7 million loss the previous year, while net income remains undisclosed.
- •Uchumi’s share gained 200% in November and remains the best-performing counter at the Nairobi Securities Exchange this year.
- •Regulatory pressure has increased after the Capital Markets Authority opened a governance review following complaints tied to audit delays, board conduct and the pace of the turnaround.
As of December 2, 2025, the stock was up 40.5% over one week, 208% over four weeks and 283% over three months. It has risen 344% over six months, 484% over one year and 617% year-to-date.
The retailer's gross profit rose to KSh 27.7 million, and other income rose to KSh 62.7 million, driven mainly by rental income from tenants, including China Square, which leases the Lang’ata Hyper branch. Rental income now anchors Uchumi’s cash flow as the retail footprint remains significantly smaller than during the 2011–2014 peak years.
Sales rose 88% to KSh 123.0 million, extending a two-year recovery from the 2023 low of KSh 36.1 million.
Operating costs moved unevenly. Administration expenses fell to KSh 20.5 million, and legal and professional fees declined to KSh 6.6 million. Staff costs increased to KSh 37.6 million, and general expenses rose to KSh 13.5 million, reflecting higher activity from the remaining outlets.
Uchumi reported progress under its court-supervised Company Voluntary Arrangement. The retailer settled KSh 232.5 million of the KSh 245.9 million planned under the current phase, covering monitor fees, legal obligations, pension arrears and repayments to long-term lenders. Payments to staff salary arrears and trade creditors continue.
The rebound follows eight years of heavy losses that peaked at more than KSh 2.2 billion shillings in 2015. The shift reflects reduced scale, lower overheads and stronger rental income that stabilised the business during restructuring.
Uchumi also continues to face uncertainty around property disputes linked to the restructuring plan.
The FY25 disclosure places Uchumi in a stronger but narrow position. Operating profit has returned, creditor settlements have advanced and the share price has surged, but the retailer remains dependent on rental income, and the core supermarket business operates far below its historical scale.
