Govt talks tough over Uchumi looting, pumps 1.2b into ailing retailer

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By KBC Reporter.

The government will prosecute all those who looted Uchumi supermarkets bringing it to its knees.

The government has made the revelations even as it defended its decision to pump in 1.2 billion shillings to revamp the ailing chain of supermarkets.

The 1.2 billion will be released as ban unconditional injection, coming after an announcement of the intended lifeline to Uchumi to assist propel the ailing company’s ongoing turnaround strategy.

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It is a decision that has been received with mixed reactions, as stakeholders called for accountability for those responsible for the collapse of the supermarket chain.

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State House spokesman Manoah Esipisu has issued a statement in which the government moves to allay concerns that those responsible for squandering the Uchumi cash will walk scot free.

He asserted that enough evidence has been gathered to press charges against persons who may have mismanaged its cash and assets.

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Esipisu defended the cash infusion, with reasons being that the opportunity to revive Uchumi as a Kenyan product ought not to be missed

Esipisu was quick to add that even closer scrutiny will be paid to the operations of the company henceforth to secure the 1.2 billion infusion of taxpayers money into the ailing firm

An assurance to the firm’s suppliers was issued as well, to the effect that they will not be harmed by this re-oganisation and injection of cash.

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Esipisu disclosed that CS Mohammed and the Uchumi management have consulted closely with the suppliers resulting in their support of the current changes.

The struggling retail store has seen many of its branches lose customers to competitors due to inadequate supplies.

Heavily indebted and unable to pay its suppliers, the supermarket was put under receivership between July 2006 and March 2010.

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