Governance concerns raised over Uchumi expansion amid unpaid staff dues

Fresh governance concerns have emerged at troubled retailer Uchumi Supermarkets after the court-appointed monitor overseeing its Company Voluntary Arrangement (CVA) revealed that the company opened new branches without his knowledge or approval, even as former employees continue to seek payment of salary arrears and terminal benefits.

Appearing before the National Assembly’s Public Petitions Committee during deliberations on Petition No. 9 of 2026, court-appointed monitor Owen Koimburi Njenga questioned the retailer’s decision to expand while outstanding obligations to creditors and former employees remain unresolved.

Njenga told the committee that Uchumi’s recent expansion raises concerns over the company’s financial priorities and adherence to the restructuring framework approved by creditors.

“The Company’s ability to fund new capital commitments while creditor and former-staff obligations remain outstanding is a legitimate and material question,” Njenga said.

“I was not briefed on the financing of either branch, nor was my approval as Monitor sought or obtained for either decision.”

According to Njenga, Uchumi recently opened new outlets at Unicity Mall along Thika Road and in Kitengela, despite a creditor resolution passed in March 2025 requiring any deployment of surplus cash flows to receive joint approval from the company’s board and the court-appointed monitor.

He noted that although the Insolvency Act gives Uchumi’s board responsibility for the day-to-day management of the company, the monitor is legally mandated to oversee compliance with the approved restructuring plan.

Njenga said the monitor’s oversight role is compromised when significant financial and capital investment decisions are undertaken without disclosure or consultation.

The governance concerns emerged as Members of Parliament continued hearing a petition filed by former Uchumi employees seeking payment of unpaid salaries and terminal benefits.

Njenga informed the committee that the retailer had made progress in settling salary arrears provided for under the revised CVA.

He said Sh6.83 million, representing 85.3 percent of the Sh8 million allocated for salary arrears, had been paid by April, with the remaining balance still undergoing processing.