Tag: Uchumi

  • KDF In Sh2.8 Billion Land Grabbing Tussle

    KDF In Sh2.8 Billion Land Grabbing Tussle

    It looks like a land-grabbing culture in Kenya has been taken a notch higher! Our defence (KDF) forces are bogged down in a legal battle with Jewel Complex over Sh2.8 billion prime land in Nairobi’s Roysambu.

    Jewel Complex Limited petitioned National Assembly’s Land Committee stating that KDF and the General Service Unit (GSU) cops have grabbed their land. According to Jewel ltd, they had paid Uchumi Sh330 million as a deposit for the two-acre land valued at Sh2.8 Billion.

    Jewel states that it developed an interest in LR No 5875 and LR No 23393, which it established belonged to Kasarani Mall Limited, a subsidiary of Uchumi Supermarkets Limited. Uchumi accepted an offer by Jewel to purchase the land at Sh2.8 billion, subject to its terms and conditions.

    Image result for KDF land"
    Photo grid courtesy

    “We are in the process of completing the extension of lease for the LR No: 23393, unless a reliable assurance is provided that the extension of lease will be completed or a condition given that the purchaser shall complete the process,” reads part of Uchumi’s letter dated April 27, 2018, to Jewel.

    According to the letter signed by Uchumi’s chief executive Mohamed A. Mohamed, Jewel was also to pay 20 per cent as deposit in an Escrow account and proof that they can complete the remaining balance.

    However, it has emerged that the crippled Uchumi had initiated amalgamation process for the two properties and that a new LR No 25544 had been issued for the two titles. An agreement of sale was entered between Kasarani Mall Limited and Jewel Complex Limited on September 20, 2018.

    “Jewel is an interested party in this matter as purchaser of LR No.5875/2 and 23393 as consolidated into LR No: 25544 and any determination of the issue before the committee touching on the aforesaid land will directly impact on its rights to property, having committed a substantial amount of money by way of deposit,” said Jewel Managing Director Boniface Maina.

    Jewel wants the Racheal Nyamai-led National Assembly committee to declare the property theirs.

    “We want this committee to establish that the land which we have already paid Sh330 million be declared as our property,” Mr Maina told the committee.

    Maina, who had accompanied his lawyer Cecil Miller, ranted that the company followed every set step with Lands Registry. Jewel paid the deposit to Messrs Hamilton Harrison and Mathews Advocates pending completion of the sale. The Sh330 million was financed by Equity Bank.

    According to Maina, Jewel had inquired from the Ministry of Lands and Housing why the military had taken over the land it was buying and had already entered an agreement but was informed that the matter was before Parliament.

    “The Roysambu KDF Camp is on the Ministry of Defence land; the issue of laying claim to a military camp does not arise. The onus is on the claimant to provide evidence,”  KDF spokesperson Colonel Paul Njuguna refuted claims that the land was owned by any other party in his response.

     

  • Choppies Stores Are Shutting Down Across The Country

    Choppies Stores Are Shutting Down Across The Country

    Choppies supermarket has shut down its Kiambu town branch just days after the retailer closed the Bungoma outlet.

    The Botswana owned retail stores were closed owing to stock shortage and debts.

    The Kiambu Mall developer in 2017 picked Choppies as the anchor tenant dropping also collapsing former market giants Nakumatt Supermarkets.

    The developer said that was arrived at due to financial difficulties around Nakumatt, a similar fate now suffered by the Botswana retail chain.

    Early last year audit reports after closure of debtridden Uchumi and Nakumatt revealed massive revenue losses adjudicating to infighting at the management level, as it is with Choppies Management in Botswana.

    The retail’s other outlets across the country are also dangling with empty shelves.

    Kisumu, Nanyuki, Embakasi and Mombasa road branches are at the edge of closure.

    Chopies has six, all struggling, branches in Kisumu city and eight others spread across Nakuru, Kisii and Kericho.

    “Choppies workers have not been paid in full to date. They have also failed to pay suppliers for a while now and this explains the closure of some branches and empty shelves on others. The supermarket is now dealing with similar issues faced by Nakumatt and Uchumi,” said Kenya Union of Commercial, Food and Allied Workers (KUCFAW) Secretary General, Bonface Kavuva.

    Choppies are barely 4 years old, they ventured into the country by taking over Ukwala Supermarkets in 2016.

    Choppies troubles blew up in 2018 when Botswana Stock Exchange (BSE) and Johannesburg Stock Exchange halted the trading of its shares over the retail’s failure to release financial results for the year ended 30 June 2018.

    The retailer has since been facing innumerable challenges with the latest being the suspension of its CEO Ramachandran Ottapathu.

    Earlier in March, the board announced that the company would embark on legal and forensic investigations and would follow its recommendations which saw Ramachandran fired in May.

    Choppies operations are currently in seven African countries.

    The retailers stores operating in the new markets are down to 212 from 260.