Uchumi supermarket is looking forward to get ban approval from the government on the sale of a portion of the disputed 20-acre Kasarani land to Jewel complexion for Sh400 million.
The retailor is also hoping to get an additional Sh600 million bail out from the State as well as compensation for the aggressive talk over of its store in Langata by the Kenya Defense Forces.
Uchumi said that the church linked group which paid Sh330 million deposit out of Sh2.8 billion deal for the 20-acre Kasarani land in 2018 may enact penalty on them if the deal collapses.
“Rescinding the sale agreement would potentially expose the company to further penalty charges and directors to future liabilities,” Uchumi says.
The retailer now says it wants to sell the non-contested three acres of the parcel of the church group pending approval from the Trade Ministry Led by the Cabinet Secretary Betty Maina.
The Kenya Defense forces have now occupied seventeen acres of the same land and only three acres are available for sale
Uchumi has been struggling to recover, weighed down multi-billion-shilling debt to suppliers and creditors.
In all this the high court intervened and had to stop the planning sale and all the outstanding debt recovery cases, loans, and rent claims against Uchumi in favour of a company voluntary Agreement.
The next meeting is scheduled on May 30 this year where the retailer and the 121 suppliers will review agreements on how to settle the Sh4.2 billion owned to them and ensure payments are made on time.