Corporate News
An Uchumi supermarket branch in Bairobi. Photo/FILE
By VICTOR JUMA
In Summary
The position was previously held by Jeff Nchaga and it
was not immediately clear whether he left the company or has taken a new
role at the retailer.
Uchumi
Supermarkets has started the search for a new head of its Ugandan
operations, as it steps up its regional expansion plans. The retailer
says it is looking for a country manager for Uganda where it has six
branches.
The position was previously held by Jeff Nchaga and it was
not immediately clear whether he left the company or has taken a new
role at the retailer. “The country manager will be in charge of the
subsidiary company business operations,” read a notice by Uchumi calling
for applicants.
“The (person) will be responsible for strategic direction, control, and overseeing of country operations.”
Unlike other Kenyan multinationals that have
appointed chief executives to head their regional subsidiaries, Uchumi
relies on the country managers who report to its CEO Jonathan Ciano. Its
country manager for Tanzania is listed as Chris Lenana.
The retailer is seeking a larger presence in the
regional market, betting on increased consumer spend to drive sales at
the new stores it has opened or plans to open.
Uchumi earlier this year opened four stores in
Kisumu, Maua, Juja and Syokimau. Besides expanding in existing markets,
the retail chain has ambitions of venturing into Rwanda and South Sudan
in the medium term.
Widen presence
Uchumi’s expansion comes amid similar moves by its
rivals Nakumatt, Naivas and Tuskys as retailers rush to widen their
presence in strategic urban areas in Kenya and beyond.
The expansion is being funded by the Sh300 million
the listed retailer recently borrowed from the government. Uchumi is
also preparing to make a cash call that will see it offer up to 100
million shares in a regional rights issue.
The company was scheduled to raise up to Sh1.5
billion in a rights issue last month, but this has been postponed to
September to allow the Treasury to source funds for the cash call. The
government is the single largest investor in the retailer with a 13.4
per cent stake.
The fundraising will target investors in Kenya,
Tanzania, Uganda and Rwanda securities markets. The firm’s latest
expansion raises the stakes in the local and regional retail market
where its rivals Nakumatt, Tuskys, and Naivas are also expanding through
acquisitions or start-up operations.
The retailers are fighting for a larger number of
outlets in high-traffic locations in the major cities in Kenya, Uganda,
Tanzania and other Eastern Africa markets. Uchumi’s new four branches
have raised its total branch network in East Africa to 34 as its top
rival Nakumatt races ahead.
Nakumatt earlier this year opened a store at the
Acacia Mall in Kampala, Uganda, and another one in Tanzania, raising its
total outlets in East Africa to 49. Nakumatt, the country’s largest
retailer, is also set to open two other stores in Tanzania to complete
the takeover of three Shoprite stores in the neighbouring country.
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