Uchumi targets KU shoppers with two campus branches

Corporate News

An Uchumi supermarket branch in Nairobi. FILE 

By SIMON CIURI

In Summary

• The smaller supermarket is expected to employ 40 workers, while the bigger one will have 250 employees.
• Uchumi has 28 branches including four in Tanzania and two in Uganda.

Uchumi Supermarkets said yesterday it plans to open two branches at Kenyatta University on Thika Road to tap the growing population in the area comprising students and residents in surrounding estates.

Chief executive Jonathan Ciano said in an interview yesterday the first Kenyatta University branch would be opened next month, while the larger one under the institution’s ‘Unicity’ would start operations early next year.

“The smaller branch will be named Uchumi KU Jipange and is located inside the university premises. The new branches are part of our wider strategy to increase our footprint in areas with huge human traffic,” said Mr Ciano.

Kenyatta University handles a daily population of more than 15,000, which is what Uchumi is seeking to capitalise on. The smaller supermarket is expected to employ 40 workers, while the bigger one will have 250 employees. Uchumi has 28 branches including four in Tanzania and two in Uganda.

Mr Ciano said the KU-Unicity branch would be a hypermarket that would also be used as a training facility for university students to enhance their business skills and knowledge.
However, he did not disclose how much the two projects would cost.

Uchumi Supermarkets already operates stores in neighbouring Uganda and is said to be planning to start operations in Rwanda by early next year. The latter is expected to create 150 new jobs in Rwanda’s capital, Kigali.

READ: Uchumi starts search for new Uganda manager

“We are now focusing on growing our branches both in areas where we have operations and also the new towns which are showing business growth prospects,” said Mr Ciano. The retailer’s expansion drive comes at a time when its rival Nakumatt has just closed a deal to buy three Tanzanian outlets of South African retail chain Shoprite.

Uchumi plans to use cash from its upcoming rights issue for expansion in existing markets and open stores in Rwanda and South Sudan. Nakumatt Supermarket is also targeting entry into South Sudan and Burundi to expand its footprint in the region making it Kenya’s first big retail chain to open shop in the two countries.

READ: Nakumatt eyes entry into Juba and Burundi