Kenya: Tuskys signs merger deal to salvage struggling retailer Nakumatt after Gov’t refuses to do bailout

Nairobi — Kenya’s biggest retailer, Tuskys, has signed a merger deal to rescue struggling Nakumatt Supermarket. Though details remain scanty, Nakumatt will access stock to replenish the empty shelves from Tuskys suppliers based on the goodwill the later has with its partners. Nakumatt will also use Tuskys’ supply chain as the two retailers look into […]

Tanzania fines EABL over Serengeti acquisition

EABL Settles Serengeti Merger Row through settlement with Tanzania regulators

Regional brewer East African Breweries Ltd (EABL) said that it will convert a loan to its Tanzanian business into equity, after reaching a settlement with the Competition Authority that had been investigating the transaction. “Early last month, we managed to close that matter, which will now allow us to complete this capital restructuring, convert our […]

East African Breweries’ full-year net profit up despite falls in Tanzania sales

Kenya’s East African Breweries said net profit for the year through June rose 6 percent to 8.5 billion Kenyan shillings ($81.89 million), helped by reduced operating costs and a slight rise in sales. The brewer, controlled by Britain’s Diageo, said in a statement on Thursday that net sales rose 2 percent, while it saved 2.3 […]

Nakumatt in talks to extend loan deals

Nakumatt in talks to extend loan deals with over 10 banks

Nakumatt is in talks with banks to restructure a Sh8 billion loan including lengthening the repayment period to offer relief to the ailing retailer. The retail chain’s management and the lenders on Tuesday met Trade Principal Secretary Chris Kiptoo to brief him on the talks. “The meeting was just to brief us about the progress. […]

Uchumi Supermarket secures investor to pump in Sh5bn ($33m)

Uchumi Chief Executive Julius Kipngetich revealed that the deal is awaiting regulatory approval before it is officially announced. “We will announce in a few days once all the necessary approvals are finished,” Kipngetich said. The strategic investor is set to inject Sh3.5 billion into the retailer which will partly plug the Sh5 billion debt hole […]

Kenyan government increases sugar imports to address shortage

The Agriculture and Food Authority is blaming traders for the biting shortage of sugar in the country. Besides drought which affected cane production in the country, the authority says wholesalers and distributors have been holding sugar affecting the market. “Distributors and wholesalers holding sugar should release the stocks into the market immediately,” said Alfred Busolo, […]

Kenya, Uganda told by EAC to resolve Uchumi pay standoff with suppliers

Kenya and Uganda have been directed by the East African Community (EAC) to resume talks in a dispute arising from Uchumi Supermarkets’ failure to pay suppliers. Uchumi exited Uganda in October 2015, closing five branches, and leaving 800 employees and suppliers demanding payments. Uganda subsequently initiated bilateral talks with Kenya to resolve the issue but […]

EABL hits out at the Kenya govt for increase in ‘sin’ taxes

East African Breweries has hit out at the government over increasingly unpredictable policy and regulatory environment. The giant brewer says this has undermined long-term investment decisions. “A predictable policy and regulation environment will help firms plan five, ten years out,” EABL chairman Charles Muchene said yesterday in Nairobi. “You have to keep taking into account […]

Bold, innovative ideas key to Uchumi’s recovery plan

An article in last week’s edition of The Standard on Sunday titled ‘Uchumi stumbles through a maze in its quest to regain glory’ left me with mixed feelings. The gist of the story was that failure by the government to give a Sh1.2b bailout on time and difficulties in disposing off some assets have slowed […]