Auctioneers storm Uchumi outlet in Kisumu

What you need to know:

  • After a tense two-hour standoff between auctioneers and the supermarket's management, the two sides came to an agreement.
  • A team of security officers from the flying squad unit in Kisumu later met the branch manager before leaving the premises quietly.
  • The owner of the building, Mr Galib Tejpar, had accompanied the officers but refused to comment on the matter to the press.

Auctioneers on Tuesday descended on Uchumi Supermarket’s #ticker:UCHM branch in Kisumu demanding to cart away belongings over Sh14 million rent arears.

Pambo Auctioneers stormed the retailer's premises at West End Mall allegedly on instructions from the owner of the building.

According to Pambo Manager Paul Oketch, the mall's anchor tenant has failed to honour its part of the bargain after the two came into an agreement a fortnight ago.

“We were here two weeks ago and the management promised to settle the debt in 14 days to no avail,” he said.

Uchumi branch manager Jeremiah Ominde, however, disputed the claim and denied accruing said arrears.

“As far as I am concerned, we don’t owe the landlord any money and our payment is up to date,” he said.

Deal

After a tense two-hour standoff between auctioneers and the supermarket's management, the two sides then came to an agreement.

“We have been advised to give it time as the two warring factions settle their disputes,” said Mr Oketch.

A team of security officers from the flying squad unit in Kisumu later met the branch manager before leaving the premises quietly.

Mr Ominde, while addressing journalists in his office, dismissed the earlier impasse as normal saying they were discussing Uchumi's re-stocking programme for the outlet that currently has empty shelves.

'Nothing sinister'

“There was nothing sinister in having the officers around as we also deliberated on how to enhance security situation of the entire mall,” he said.

The owner of the building, Mr Galib Tejpar, had accompanied the officers but refused to comment on the matter to the press.

The Business Daily has however learnt that the retailer's top management in Nairobi has promised to settle the matter and assured Mr Tejpar of a coming into an amicable solution by tomorrow (Wednesday).

Uchumi Supermarket's net loss for the half year ended December 2017 widened 63.5 per cent to Sh895.1 million on a sharp sales drop.

The retailer made a net loss of Sh547.3 million in the same period the year before, with the performance coming after turnover declined 71.4 per cent to Sh526.9 million.