Uchumi Supermarkets has assured Parliament of its commitment to settling all legitimate debts owed to former employees and creditors as it navigates challenges in implementing its Court-approved Company Voluntary Arrangement (CVA).

The assurance was made on August 4, 2026, during a session before the National Assembly's Public Petitions Committee, chaired by Runyenjes MP Muchangi Karemba. The committee was responding to a petition from former employees alleging incomplete fulfillment of the CVA obligations.

Debt Settlement Progress

Uchumi's management reported that approximately 85% of the debts under the CVA had been cleared by April 2026, with ongoing efforts to address the remaining balances. Present at the hearing were CEO Lawrence Ngao, Board Chairman John Mwara, Company Monitor Owen Koimburi, and Company Secretary Judith Matoto.

Property Dispute Impact

The committee was informed that delays in payments are partly due to a legal dispute over about 17 acres of land owned by Kasarani Mall Limited, a Uchumi subsidiary. The property, valued at over Ksh5 billion, is currently occupied by the Kenya Defence Forces for an Affordable Housing Project and cannot be monetised.

CEO Ngao explained that this situation has hindered Uchumi's ability to leverage the asset to accelerate debt repayments. The matter is now before the Court of Appeal, involving the Attorney General, Ministry of Defence, and Kenya Defence Forces.

Governance Concerns Raised

MP Karemba questioned the governance practices in implementing the CVA, particularly the limited involvement of the company monitor in key decisions such as opening new branches and handling cash flow records. The monitor reported not being adequately briefed or provided with relevant financial information, raising concerns about adherence to agreed protocols.

In response, Board Chairman John Mwara denied any conflict among management, the board, and the monitor, emphasizing ongoing engagement and cooperation. He noted a recent agreement to develop a strategy to improve collaboration and resolve outstanding issues.

Next Steps

The Public Petitions Committee will review submissions from all parties before compiling a report for the National Assembly.