Uchumi Supermarkets has taken a strong stance to fulfill all legitimate outstanding obligations to former employees and creditors. This commitment comes as the company faces scrutiny from Parliament regarding the implementation of its Court-approved Company Voluntary Arrangement (CVA).
On Tuesday, August 4, 2026, the supermarket chain’s management provided this assurance while addressing the Public Petitions Committee of the National Assembly. They responded to a petition from former employees concerning the alleged failure to honor commitments made under the CVA.
During the meeting, chaired by Runyenjes MP Muchangi Karemba, the committee learned that Uchumi had settled approximately 85% of the dues owed under the arrangement as of April 2026. The management assured the committee that they are actively working to clear the remaining balance.
Present at the committee were Uchumi’s Chief Executive Officer and Managing Director, Lawrence Ngao; Board Chairman, John Mwara; Company Monitor, Owen Koimburi; and Company Secretary, Judith Matoto. Koimburi updated MPs on the progress made in settling creditor obligations, acknowledging that some payments remain outstanding.
The committee heard that efforts to expedite payments had faced delays due to a legal dispute involving around 17 acres of land owned by Kasarani Mall Limited, a wholly-owned subsidiary of Uchumi Supermarkets PLC. Ngao explained that this property, which is vital for the CVA’s implementation, cannot be monetized at present because it is occupied by the Kenya Defence Forces, who are engaged in an Affordable Housing Project.
Ngao expressed the urgency of this situation, stating, “The Company has been unable to realize the value of this strategic asset, which is crucial for implementing the CVA and accelerating payments to creditors.” He further noted that Uchumi has taken legal action to protect its interests, with the case currently before the Court of Appeal involving the Attorney General, the Ministry of Defence, and the Kenya Defence Forces.
The officials revealed that the disputed property is valued at over Ksh5 billion. Unlocking its value would significantly bolster the company’s financial standing and enhance its ability to settle remaining obligations under the CVA.
However, lawmakers voiced concerns regarding governance issues tied to the CVA’s implementation, particularly the company monitor’s role in key decisions. Karemba questioned the board’s decision-making process, highlighting instances where new branches were opened without adequate involvement from the monitor.
“The monitor has indicated that he was not informed about the opening of new branches and has repeatedly sought updates on Board decisions without success,” Karemba stated. He emphasized the need for transparency and collaboration, noting that creditors had resolved that surplus cash should be allocated solely to creditor settlements, requiring joint approval from both the Board and the monitor.
In response, Uchumi Board Chairman John Mwara dismissed any notions of conflict among the management, board, and monitor. He emphasized, “We have remained in constant engagement and collaboration.” Mwara also shared that the board and monitor recently convened to develop a strategy aimed at guiding future engagements and resolving outstanding issues.
“Last month, we agreed to create a strategy before holding a joint meeting to address outstanding concerns, foster better understanding, and establish a practical framework,” he added.
The Public Petitions Committee will now gather submissions from all stakeholders before preparing and presenting its comprehensive report to the National Assembly. This collaborative approach aims to ensure transparency, accountability, and a successful path forward for Uchumi Supermarkets.
