Government rules out bailout for Nakumatt Supermarkets

By Judith Akolo

KBC Radio_KICD Timetable

The government is rooting for self regulation within the retail sector to stem challenges that supermarkets have been facing.

Trade Principal Secretary Dr. Chris Kiptoo says a legal framework to support this is being drafted.

While ruling out a government bailout for Nakumatt, the PS said the state is monitoring how Uchumi Supermarkets spends the half a billion shillings taxpayers money, which is part of the 1.3 billion shillings approved by the cabinet.

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There is no end in sight for the problems bedeviling Nakumatt Supermarket as the government declined the retailer’s appeal for a bailout.

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He says a taskforce report on the retail sector to be launched next week will enable the government come up with modalities to guide the sector.

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Among options being fronted by the government include regulating the sector in order to forestall further chaos in the sector.

And the Cabinet in December approved a 1.8 billion shillings bailout for Uchumi supermarkets, which owes suppliers and banks in excess of 1.3 billion shillings.

So far Uchumi Supermarket has received 500 million shillings from the government.

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The government will next week launch the consolidated Trade Policy that aims to address challenges and enable trade to contribute meaningfully to the economic transformation of this Country.

This will also see the launch of the National Trade Facilitation Committee, the National Trade Negotiations Council as trade enablers as well as launch the Buy Kenya Build Kenya Strategy and National Export Strategy.


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