The supermarket that once ruled Kenyan shelves is now buried under Sh7 billion of red ink.
Uchumi Supermarkets has disclosed a staggering negative equity of Sh7.05 billion as of June 2025 — a 106.74 percent jump from Sh3.41 billion in 2017. That’s not a dip. That’s a collapse.
Technically, the retailer is insolvent. Liabilities have crushed assets. Accumulated losses from years of turmoil have left the company with a negative net worth. And yet, Uchumi is calling shareholders to its first Annual General Meeting in eight years — on April 29.
So, is there any good news?
Surprisingly, yes.
For the financial year ended June 2025, Uchumi posted a rare profit of Sh8.7 million. That’s a dramatic turnaround from a loss of Sh167.8 million the previous year. The driver? Not groceries — but rent.
The company has shifted from a retail model to a rental income model. Think China Square, not corner store. Strict cost management and improved revenue have finally pushed the needle into the black.
But the legacy burden remains enormous.
Uchumi is operating under a Company Voluntary Arrangement (CVA) — a court‑supervised debt restructuring plan set up in March 2020. It gives the retailer a six‑year window to settle creditors, ending June 2026. That clock is ticking.
The National Treasury owns 14.7 percent of Uchumi. And the retailer is locked in a legal battle with the Kenya Defence Forces over a 17‑acre land in Kasarani. The outcome could make or break any real revival.
For now, shareholders will gather this month to adopt financial statements covering eight years — from 2018 to 2025. The last AGM was in March 2018, back when optimism about a Sh3.5 billion strategic investor still flickered.
That investor never came. But management says restructuring is gaining traction.
One profit doesn’t erase Sh7 billion. But after eight years of silence, even a small spark looks like light.