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Nairobi, May 31, 2011

President Mwai Kibaki cuts the cake to mark the relaunch of the trading of the Uchumi supermarkets Limited shares at Nairobi stock exchange at a Nairobi hotel. Looking on is from left is the Chairman Abdulrazaq Adan Ali, Minister Ali Chirau Makwere and Dr. Jonathan Ciano, the Chief Executive officer of Uchumi Supermarkets Limited.

Re-listing of Uchumi shares a worthwhile gift to the nation- President Kibaki

President Mwai Kibaki has termed the re-listing of Uchumi Supermarket Shares at the Nairobi Stock Exchange a worthwhile gift to the nation coming on the eve of celebrating the 48th Madaraka day tomorrow.

Thanking the entire staff and management of the Uchumi Supermarket for the sterling performance of the company leading to the re-listing of the shares, President Kibaki also praised Kenyans for devotedly supporting the superstore over the years.

President Kibaki made the remarks today when he presided over the re-launch of trading of the Uchumi Supermarket shares at the Nairobi Stock Exchange after four years of suspension.

The Head of State expressed confidence that Uchumi would continue to set pace in the retail and commercial sector and commended the supermarket for developing innovative products that are being viewed as a first in a fiercely dynamic and competitive market.

The President told the supermarket chain to support local farmers and suppliers.

President Kibaki said, “As will be recalled, the Government first invited the public to invest in Uchumi Supermarkets in 1992 through an Initial Public Offering. The Government then was satisfied it was divesting from a healthy Company, with a view to enabling small and large investors to own a piece of our leading chain store.”

The President fondly remembered that in 1990’s Uchumi spearheaded the hypermarket concept in Kenya and was largely credited for revolutionalizing the retail food sector by giving customers a variety of products from which to choose.

He noted that the superstore was a major outlet for local manufacturers and suppliers of fresh produce with over 2,500 suppliers majority of whom were local citizens before it experieced financial and operational difficulties.

Consequently the Capital Markets Authority suspended the trading of Uchumi shares in June 2006, the Head of State recounted.

As part of the rescue plan, a taskforce was created to guide the revival and a loan of Kshs 675 million was advanced to the supermarket by the Government to achieve that goal thus solidifying the commitment to develop the retail sector as an essential pillar in the realization of Vision Twenty Thirty.

The President said, “Uchumi provides employment to over 2,000 young Kenyans, Ugandans and Tanzanians. It has also set the pace in the industry by paying taxes diligently, while providing healthy competition in the Eastern African Region.”

While under receivership, President Kibaki noted, the superstore was successfully turned around hence bouncing back to pay its debts amounting to over Kshs 1 billion owed to suppliers, landlords and former staff .

The President remarked, “I have been informed that the Uchumi Supermarket has repaid the original loans to the banks. Additionally, I am glad to note that the Company has paid one billion Shillings to the suppliers, landlords and former staff. Moreover, the original government loan plus interest has partly been settled or restructured into equity.”

Speaking during the occasion, Deputy Prime Minister and Minister for Finance Uhuru Kenyatta underscored the importance the Government attaches to economic development to improve the welfare of Kenyans.

In this regard, the Finance Minister commended the Government’s efforts that enabled Uchumi to turn-around and become a profitable venture.

Reaffirming his ministry’s commitment to make the Capital Market Authority more effective, the Finance Minister said several proactive measures have been taken to ensure financial stability.

On his part, Trade Minister Chirau Ali Makwere supported the Government’s intervention to ensure companies are managed effectively and are guarded against bankruptcy.

The Trade Minister said the lifting of the suspension of the trading of the Uchumi Supermarket shares at the Nairobi Stock Exchange will unlock the company’s potential and enable Kenyans to contribute to the country’s economic growth.

Other speakers included the Chairman of Uchumi Supermarkets Limited Board, Eng. Abdulrazaq Adan Ali and the Nairobi Stock Exchange Chairman, Mr. Eddy Njoroge.