Uchumi Supermarkets PLC has assured Parliament that it remains committed to settling all verified outstanding obligations owed to former employees and other creditors, despite delays caused by an ongoing legal dispute over one of its key assets.
The commitment was made on Tuesday, August 4, 2026, when senior officials from the retailer appeared before the National Assembly’s Public Petitions Committee to respond to a petition filed by former employees who claim the company has not fully implemented its obligations under the Court-approved Company Voluntary Arrangement (CVA).
During the session, chaired by Runyenjes MP Muchangi Karemba, Members of Parliament were informed that Uchumi had settled approximately 85 per cent of the debts covered under the restructuring plan by April 2026, with efforts continuing to clear the remaining balance.
The committee heard submissions from Chief Executive Officer and Managing Director Lawrence Ngao, Board Chairman John Mwara, Company Monitor Owen Koimburi and Company Secretary Judith Matoto, who updated lawmakers on the progress of the retailer’s financial recovery.
Koimburi told the committee that the company had made significant progress in meeting its obligations to creditors but acknowledged that some payments remained outstanding.
“We have made considerable progress in settling obligations under the Company Voluntary Arrangement, although some payments are still pending,” Koimburi told the committee.
Uchumi attributed the delays to a court case involving approximately 17 acres of land owned by Kasarani Mall Limited, a wholly owned subsidiary of the supermarket chain.
According to Ngao, the land was expected to play a central role in financing the retailer’s recovery strategy. However, the property cannot currently be commercialised because it is occupied by the Kenya Defence Forces (KDF), where the government is implementing an Affordable Housing Programme.
“As a result, the Company has been unable to realize the value of this strategic asset, which was expected to significantly contribute to implementing the CVA and to accelerate payments to creditors,” Ngao told the committee.
He further disclosed that the dispute is now before the Court of Appeal, with the Attorney General, the Ministry of Defence and the Kenya Defence Forces named as parties in the case.
Company officials told MPs that the disputed property is valued at more than KSh5 billion, arguing that resolving the legal matter would significantly improve Uchumi’s financial position and enable faster settlement of the remaining creditor claims.
The Company Voluntary Arrangement, approved by the courts as part of Uchumi’s restructuring process, provides a framework for the retailer to repay creditors while continuing its business operations. The arrangement was introduced after years of financial difficulties that saw the once-dominant supermarket chain struggle with mounting debt, store closures and operational challenges.
Former employees who petitioned Parliament are seeking assurances that the retailer will honour the commitments made under the CVA, particularly regarding unpaid employment-related claims.
The Public Petitions Committee is expected to continue reviewing the matter before making recommendations on the implementation of the recovery plan and the concerns raised by the petitioners.
Uchumi management maintained that it remains committed to completing the restructuring process and settling all legitimate claims once the outstanding legal and financial challenges are resolved.