Uchumi Supermarket Limited Shares have been on a rally for the past three weeks, climbing to a high of KSh 1.22 this Tuesday, its highest since 2018. At the close of business, yesterday, Uchumi shares increased 9.91% to KSh 1.22 from the previous day’s KSh 1.11.
Uchumi Supermarkets Plc has stirred interest at the Nairobi Securities Exchange (NSE) for the past three weeks, being among the top price gainers in a market that is now turning bearish. The upward movement on the Uchumi counter first begun with the release of its latest earnings, which showed a net profit of KSh 8 million, the first in years—reversing a KSh 49.7 Million loss recorded in June 2024.
This sterling turnaround in the retailer’s fortunes has triggered renewed investor interest.
The Uchumi share price jumped significantly, supported mainly by speculative trading and tactical investment, with over 1.5 million shares traded in the first week they announced the positive report. The counter emerged as the top gainer of the day, outperforming major counters such as Absa NewGold ETF, Williamson Tea, Britam Holdings, and Nation Media Group.
Uchumi’s share price has climbed from KSh 0.17 at the start of the year—an impressive rally considering its distressed status and a modest market capitalisation of KSh 139 million.
Uchumi fortunes have been in doldrums from a peak operating loss of KSh 2.23 billion in 2015 to a profit of KSh 536.75 million in 2010, being in loss territory between 2015- 2024 and between 2003-2007.
The listed retailer posted an operating profit of KSh 295.45million in 2008, which peaked to KSh 536.75million in 2010 before falling back to losses from 2015 until the KSh8million profit upswing in 2024.
According to Dedan Maina, an investment insider, the retailer has been under financial distress.
“Despite years of distress, the listed retailer has executed several real, documented and measurable restructuring steps that continue to shape its recovery under the Company Voluntary Arrangement (CVA). These actions are backed by creditor reports, court filings, and financial disclosures,” said Maina.
Uchumi: Why the counter is attractive despite looming liquidation
For instance, Uchumi secured a court-approved moratorium under the CVA that stopped banks and other creditors from seizing or auctioning its remaining properties.
Without this moratorium, Uchumi’s remaining properties — including Langata Mall, Kasarani parcels, and smaller assets — would likely have been seized years ago, leaving nothing to turn around.
In order to improve liquidity and honour part of its debt obligations, Uchumi executed targeted real estate sales. The insolvent retailer successfully sold a 3-acre portion of the Kasarani Mall Limited (KML) property. Proceeds were used to settle about 95% of first-phase creditor payments, reducing immediate insolvency pressure.
This is a classic restructuring tactic. Convert non-earning land into debt reduction plus working capital before it becomes distressed and loses value.
Uchumi: Its winning property leasing strategy
Uchumi also monetized Idle Assets by Leasing Commercial Properties such as China Square.
The retailer pivoted from retailer to property-income generator by renting out floor space instead of running loss-making stores. The Langata Road former hypermarket was converted into a multi-tenant mall.
China Square, occupying the main hall since June 2024, contributes about KSh 5 million monthly in rent. Total rental income now sits at roughly KSh 5.94 million monthly.
“This rental stream is now the retailer’s most stable cashflow engine — a predictable inflow that supports operations while easing dependency on shrinking retail margins,” said Maina.
Uchumi is also leveraging the Government’s new e-Procurement system. For suppliers, this means faster payment cycles, transparent tendering, lower administrative barriers and expanded supplier base for SMEs and recovering firms.
Uchumi leveraging on e-procurement system
With its improved financial disclosures, cleaner balance sheet under CVA supervision, and stabilizing cashflows, the retailer is now structurally better positioned to re-enter government supply chains, especially for non-perishable goods, office supplies, household consumables and logistics support to public institutions.
Because the new e-procurement system levels the playing field and removes some gatekeeping previously dominated by larger players, Uchumi can bid more competitively.
The retailer can also scale operations without reopening many physical stores, build steady B2G (business-to-government) revenue streams and re-establish brand relevance without heavy capital expenditure.
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Let not any intelligent or enterprising investor buy Uchumi shares!!!