Kenya’s Uchumi Supermarket reopens Unicity and Lang’ata outlets in Nairobi

KENYA – Uchumi Supermarket has reopened two outlets in Nairobi, marking a limited return to physical retail operations after a prolonged period of financial and operational restructuring.

The retailer has resumed business at Unicity Mall along Thika Road near Kenyatta University and at the Lang’ata Hyper complex on Lang’ata Road.

The reopening shows the company’s cautious approach as it attempts to re-establish a footprint in the capital while managing long-standing financial obligations.

At Unicity Mall, Uchumi operates a compact store that stocks basic household goods and features an in-house bakery; the outlet quietly reopened in late 2024.

The Lang’ata Hyper site, by contrast, is now structured as a shared commercial property, with Uchumi operating a retail section alongside multiple external tenants.

In announcing the development through its official social media channels, the retailer described the move as a return to serving customers, though no timelines were given for additional store openings.

Uchumi, which was founded in the 1970s and listed on the Nairobi Securities Exchange in 1992, was once among the most recognisable supermarket chains in Kenya.

At its peak, the company operated stores across Kenya and maintained a regional presence in Uganda and Tanzania before scaling back amid persistent losses.

The retailer is currently operating under a Company Voluntary Arrangement, a court-backed framework that allows it to trade while settling debts under agreed terms.

Property optimisation has been central to this strategy, with underutilised space at locations such as Lang’ata being leased to third-party tenants to generate income.

Financial position

Management accounts for the year ending June 2025 show that Uchumi posted a profit of about US$67,692, compared with a loss of roughly US$382,308 in the previous financial year.

Although the result marked the first profitable outcome in several years, it fell short of the targeted surplus of about US$98,846 (US$) set under the recovery plan.

Sales revenue rose to approximately US$946,231 from US$503,077, resulting in a gross profit of about US$213,077 after costs of sales.

Rental income accounted for a significant share of earnings, climbing to around US$482,308 following the leasing of the Lang’ata Hyper premises to China Square in mid-2024.

According to CVA supervisor Owen Koimburi of Forvis Mazars Kenya, Uchumi currently hosts 11 tenants who collectively pay about US$45,692 per month, with China Square contributing the majority.

Recovery plan outlook

The CVA, which began in March 2020, outlines a six-year debt settlement programme running until June 2026, under which about 95 percent of the targeted US$1.89 million has been paid.

Most of the repayments have gone to banks, while trade creditors, landlords, staff arrears, and legal costs account for the balance.

Koimburi has cautioned that Uchumi’s recovery remains linked to an ongoing appeal over ownership of a 17-acre Kasarani land parcel valued by the retailer at about US$18.31 million, warning that an adverse ruling could disrupt the arrangement.

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