Uchumi Supermarkets, often referred to simply as Uchumi, is a Kenyan supermarket chain. The word uchumi means “economy” in Swahili.
Website: https://www.uchumisupermarkets.co.ke/
For a period spanning 42 years, Uchumi Supermarkets Public Listed Company has been a household name selling a wide array of goods including fresh fruits, vegetables, decorations, kitchen appliances , electronics, bakery products and just about anything you may need.
Overview
Uchumi is headquartered in Kenya. As of April 2019, Uchumi is one of a number of Kenyan supermarket chains that serve Kenya, including market-leaders Naivas and Quick Mart and Carrefour. In June 2014, the company’s assets were about US$78.8 million (KES:6.885 billion), with shareholder equity of approximately US$38.4 million (KES:3.357 billion). By December 2020 there were only three stores in Kenya.
History
The company was founded in 1975, as a public limited liability company, by three Kenyan parastatal companies: Industrial and Commercial Development Corporation, Kenya Wine Agencies Limited (KWAL), and Kenya National Trading Corporation. The main objective at the time was to create outlets for the equitable distribution of commodities and to create retail outlets for Kenyan manufactures. In 1976, Uchumi’s shareholders signed a management contract with Standa SPA, an Italian supermarket chain, to train Kenyans to run the new enterprise. The shares of the company stock were listed on the Nairobi Stock Exchange (NSE) in 1992.
Uchumi closed down, albeit temporarily, and was placed in receivership during June 2006 after 30 years of business. It was simultaneously de-listed from the NSE. At the time, its closure was described as “one of the greatest corporate disasters in independent Kenya history”. A government-led rescue plan, however, was initiated and consequently five Uchumi outlets, all in Nairobi, were reopened on 15 July 2006 under interim management and a caretaker administrator.
By January 2011, the retail chain had returned to profitability and applied to the Kenya Capital Markets Authority to re-list its shares on the NSE. Approval to re-list on the NSE was granted in May 2011 and trading in the shares of Uchumi resumed on 31 May 2011.
BRIEF HISTORY
- Uchumi is a public limited company incorporated in 1975 under the Companies Act (Cap 486 of the Laws of Kenya).
- The first three branches were opened in 1976. Uchumi became a trendsetter in low pricing to the advantage of all consumers, while at the same time maintaining high standards in quality of goods and services.
- Today, Uchumi is one of the largest commercial retailing companies in the country
Ownership
As of July 2014, the shares of stock of the retail chain are listed on the NSE, where they trade under the symbol “UCHM”. The shares are also cross-listed on the Rwanda Stock Exchange and the Uganda Securities Exchange. The company obtained regulatory approval to cross-list on the Dar es Salaam Stock Exchange, effective 15 August 2014. The six largest shareholders in the company as of April 2015 were:
| Rank | Name of Owner | Percentage Ownership |
|---|---|---|
| 1 | Jamii Bora Bank | 15.8 |
| 2 | Kenya’s Ministry of Trade | 14.6 |
| 3 | Paul Wanderi Ndung’u | 5.4 |
| 4 | KWAL Holdings | 4.3 |
| 5 | Equity Nominees: Ac:00111 | 4.1 |
| 6 | Karim Jamal | 2.3 |
| 7 | 16th Internationalé de Háfs | 1.1 |
| 8 | Others via the Stock Exchanges in eastern Africa | 52.3 |
| Total | 100.00 |
Branches
As of April 2019, the supermarket chain maintained Six outlets in Kenya:
List of Branches in Kenya
List of Uchumi branches in Kenya:
- Langata Branch – Nairobi
- Nairobi West Branch – Nairobi
- Ngong Road Branch (Adams) – Nairobi
- In 2015 Uchumi had 37 stores. 34 stores have closed down.
Closure of non-Kenyan stores
In June 2015, Uchumi fired its chief executive officer and chief financial officer at the time, for “misconduct and gross negligence”. In July 2015, the company hired a Nairobi-based consulting firm to probe employee theft at the retail chain. In August 2015, a new CEO was hired. In October 2015, the store chain closed down all its stores in Uganda and Tanzania, citing unprofitability. In the process, 900 former employees were laid off in both countries, of whom 400 were in Uganda
Uchumi engages suppliers on merit of their products meeting listing requirements and the needs of our customers and also on suppliers’ ability to meet the listing requirements
Supplier must be registered with the registrar of companies under the provisions of the company Act
Supplier must possess PIN certificate issued by Kenya revenue authority
Supplier must be registered for Value Added Tax and issued with a VAT certificate or Exemption letter.
Supplier should have a good reputation with no record of fraudulent dealings and must maintain high integrity in all business transactions with Uchumi. Supplier should have the capacity to fully supply orders issued by the head office and/or Uchumi branches.
Supplier will be required to fill a Supplier Profile Form and Terms of Trade agreement with Uchumi to formalize the trading contract between the two parties.
Requirements for Product supply
Products must meet health, safety and standardization requirements as set out by Kenya bureau of Standards and other government regulatory bodies
Product must be properly packaged and/or labeled to appeal to customers and express its attributes
Products must bear valid Bar Codes issued by a recognized Bar coding body.
The product labeling must include the following as minimum requirement such as Brand, Product Name, Manufactures name and country of origin, Expiration date ( for perishable products), Storage instructions ( for perishables or products that deteriorate with time), Ingredients ( for processed products), Bar code and Size (weight, volume, length)
