Church seeks 400 million shillings refund from Uchumi
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Church seeks 400 million shillings refund from Uchumi
Friday, May 13, 2022
Branch of Uchumi Supermarkets in Nairobi. FILE PHOTO | NMG
Summary
- The Jesus Winners Department said it took out a loan and disbursed the money to the retailer, but waited four years to close the deal which is now stalled at the Commerce Department.
- The church group has now issued a 21-day ultimatum to the retailer to complete the sale or return the money with 24% interest on the deposit.
- Uchumi signed a sale agreement with Jewel Complex, a company owned by the religious group, which had agreed to buy the 20-acre land for 2.8 billion shillings.
The religious group that bought part of the Kasarani land from the Uchumi supermarket is seeking a refund of 401 million shillings plus interest if the retailer fails to close the deal within 21 days.
The Jesus Winners Department said it took out a loan and disbursed the money to the retailer, but waited four years to close the deal which is now stalled at the Commerce Department.
The church group has now issued a 21-day ultimatum to the retailer to complete the sale or return the money with 24% interest on the deposit.
Uchumi signed a sale agreement with Jewel Complex, a company owned by the religious group, which had agreed to buy the 20-acre land for 2.8 billion shillings.
However, the Kenya Defense Force (KDF) moved their equipment and set up camp on Kasarani’s main plot on the Thika Highway claiming 17 acres of the property, creating a standoff with the cash-strapped retailer.
The church has agreed to buy the three undisputed acres pending approval from the Department of Commerce, which is headed by Cabinet Secretary Betty Maina.
It is unclear why the government did not allow Uchumi to sell the property even after the retailer obtained a letter of no objection from the military to dispose of the parcel.
“We have issued a 21 day notice dated May 4, 2022, pursuant to the sale agreement for them (Uchumi) to transfer title to our name. We appeal to CS Trade and Enterprise Development Betty Maina, PS Amb. Johnson Weru and the Uchumi Supermarkets Board to wrap up the process,” Reverend Edward Mwai said.
“If the process is not concluded, the government should refund us all the money we paid plus 24% interest, as stipulated in the contract,” he said.
Uchumi struggles to recover, weighed down by billions in debt to and from other creditors.
The High Court had stopped the planned sale and all pending debt collection cases, pending loans and rent claims against Uchumi, in favor of a voluntary settlement with creditors.
Supermarket creditors will meet on May 30. At the meeting, the retailer and 121 suppliers are expected to review agreements on how to settle the 4.2 billion shillings owed to them and ensure payments are made on time.
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