In compliance with a High Court ruling permitting the United Bank of Africa (UBA) to auction Uchumi Supermarket due to an outstanding debt of KES 162.0 million, Kuria Kimani, Chairman of The National Assembly’s Finance and Planning Committee, urged the Treasury to engage in discussions with UBA Bank and other relevant agencies within the next seven days. The objective is to reach a mutually agreeable resolution and prevent the auction of the prime property.
The National Assembly Finance and Planning Committee issued a directive to the Treasury following the High Court’s decision, instructing them to convene with UBA Bank and devise a solution, as Uchumi Supermarket failed to meet its commitment to settle the debt.
The court ruling highlighted the retailer’s non-compliance with the terms of the Company Voluntary Arrangement (CVA) and the absence of the required creditors’ meeting stipulated in the CVA, which the supervisor delayed convening for one and a half years. Justice Mabeya observed the supervisor’s efforts to modify the initial CVA in favor of the company.
UBA had initiated a bid to auction the land the previous year but suspended the plans after the government announced its intention to compulsorily acquire the land, prioritizing payment to the lender. The Finance and Planning Committee convened with Dr. Kiptoo, the Treasury Principal Secretary, to address the High Court decision allowing UBA Bank to sell the land for debt recovery.
This meeting followed the committee’s directive to Dr. Kiptoo to engage with stakeholders, including the Kenya Development Corporation and creditors, to reach a consensus.
Kimani expressed dissatisfaction with the Treasury’s lack of proactive involvement in addressing the matter despite being a major shareholder. He stated, “Had the Treasury, which injected Kshs 1.2 billion bailout and is a shareholder at Uchumi, acted promptly, the court would not have allowed UBA to auction the property.”
