The management of Uchumi Supermarkets on Tuesday, August 4^th, 2026 reaffirmed its commitment to settling all legitimate obligations owed to its former employees and other creditors and has assured the Public Petitions Committee that it remains committed to fully implementing the Company Voluntary Arrangement (CVA).

The commitment was made during the meeting chaired by Hon. Muchangi Karemba (Runyenjes) as officials responded to Public Petition No. 9, filed by former employees regarding the company's alleged failure to fully honor commitments made under the Court-approved CVA.

Appearing before the Committee were Chief Executive Officer and Managing Director Mr. Lawrence Ngao; Board Chairman Mr. John Mwara; Company Monitor Mr. Owen Koimburi; and Company Secretary Ms. Judith Matoto. The Monitor informed Members that, as of April 2026, approximately 85 percent of the dues owed under the CVA had been settled, with efforts ongoing to clear the remaining balance.

The Committee also heard that the company's efforts to accelerate payments to creditors have been affected by a legal dispute over approximately 17 acres of land owned by Kasarani Mall Limited, a wholly owned subsidiary of Uchumi Supermarkets PLC.

Mr. Ngao explained that the land is currently occupied by the Kenya Defence Forces, and the Government is undertaking an Affordable Housing Project there, preventing the company from realizing the asset's value.

"As a result, the Company has been unable to realize the value of this strategic asset, which was expected to significantly contribute to implementing the CVA and to accelerate payments to creditors," said Mr. Ngao.

He added that the company had initiated legal proceedings to protect its interests, noting that the matter is currently before the Court of Appeal and involves the Attorney General, the Ministry of Defence, and the Kenya Defence Forces.

The officials further informed the Committee that the property is valued at more than KShs. 5 billion and that realizing the asset would significantly strengthen the company's financial position and enhance its ability to settle the remaining obligations under the Court-approved CVA.

Committee Chairperson Hon. Muchangi Karemba, however, raised concerns about what appeared to be the exclusion of the Company Monitor from key governance decisions, including opening new branches, implementing Board resolutions, and overseeing the company's cash flow.

"The monitor says he was not briefed on the opening of new branches and has repeatedly sought updates on the implementation of Board decisions without success. He also says he has not been provided with records of cash flow application, despite creditors resolving that surplus cash should be applied only to creditor settlements, with the joint approval of the Board and the monitor. Given these concerns, there appears to be a governance pattern in which the Board has not consistently sought or waited for the monitor's advice. Why did you proceed with these actions without involving the monitor?" asked Hon. Karemba.

Responding to the concerns, Board Chairman Mr. John Mwara stated that the parties have maintained regular engagement and are working to develop a strategy applicable to all parties.

"I would like to correct the perception that there has been a tug-of-war among Uchumi management, the Board, and the monitor. That is not correct. We have remained in constant engagement. Last month, the Board and the monitor met and agreed to develop a strategy before holding a joint meeting to address outstanding issues, better understand each other, and establish a workable framework," said Mr. Mwara.

The Public Petitions Committee will consider all stakeholder submissions before preparing and tabling its report before the House.