Jamii Bora Bank CEO resigns from Uchumi board

An Uchumi Supermarket branch along Koinange Street. Jamii Bora Bank CEO Samuel Kimani has resigned from the retailer's board. FILE PHOTO | DIANA NGILA | NATION MEDIA GROUP

The boss of Uchumi’s biggest shareholder, Jamii Bora Bank, has resigned from the troubled retailer's board of directors.

In a regulatory filling, Uchumi indicates that the Tier III lender's CEO Samuel Kimani has resigned from its board and will be replaced by Jamii Bora's Chief Operating Officer, Mr Tim Kabiru.

“To fill the vacancy, the board has appointed Tim Kabiru as a director which appointment is subject to confirmation by the shareholders at the next annual general meeting,” the notice read.

In a statement to the Nation Wednesday, Uchumi also indicated that the move was due to a conflict of interest arising from Mr Kimani's membership on the board of the Nairobi Securities Exchange (NSE) where Uchumi is a listed company.

Jamii bora owns 15.8 per cent shareholding of the retailer followed by the government which controls 14.6 per cent stake.

Their stake will be diluted by nearly 60 per cent after suppliers of the retail chain agreed to convert Sh1.8 billion debt into equity in an out-of-court settlement.

The debt is part of an estimated Sh3.6 billion owed to suppliers.

The company has been struggling under the weight of debt that has sunk it into a negative asset position.