Iconic Uchumi Supermarkets fights back with new strategy to stay alive

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Kenya’s once-iconic Uchumi Supermarkets is back — at least partially.

The retailer has reopened two branches in Nairobi, sparking nostalgia for shoppers who remember the 1980s and 1990s, when Uchumi was the go-to store for everything from flour to fresh bread.

The new outlets are at Unicity Mall along Thika Road, near Kenyatta University, and Lang’ata Hyper on Lang’ata Road. The Unicity Mall branch, which reopened in late 2024, focuses on essentials and bakery goods, while Lang’ata Hyper now functions as a mixed-use retail and commercial hub, hosting other tenants alongside Uchumi’s operations.

“Uchumi is back — not just as a store, but as a story reborn,” the retailer said in a statement. “The shelves are filling, the ovens are warm, and the memories are alive again. Welcome back to the supermarket you never stopped loving.”

FINANCIAL WOES

Founded in the 1970s and listed on the Nairobi Securities Exchange in 1992, Uchumi became a household name across Kenya, and even expanded to Uganda and Tanzania. But the retailer’s history is littered with crises — from a collapse in 2006 and a government-led rescue to further financial woes and governance disputes that led to court-supervised restructuring.

Today, Uchumi is operating under a Company Voluntary Arrangement (CVA), allowing it to reorganise while trading. Leasing parts of its stores, like the Lang’ata outlet, to other businesses is central to this survival strategy, helping generate revenue without overextending.

Legal battles have also defined Uchumi’s comeback. Last year, the High Court awarded it KSh26.7 million in damages over a breached franchise agreement with Aljazeera City Market, a victory that underscored the retailer’s renewed focus on franchising.

By licensing its brand rather than running all stores itself, Uchumi hopes to cut costs and stay relevant in a market dominated by Naivas, Carrefour, and Quickmart.

PENDING LAWSUITS

Yet challenges remain. The Capital Markets Authority is scrutinising the retailer’s governance and compliance practices, following investor complaints and past regulatory breaches. Meanwhile, its NSE-listed shares trade at minimal value, and pending lawsuits, a shrinking branch network, and a tarnished brand continue to cast long shadows.

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