Ladies and Gentlemen,

I am happy to preside over the re-launch of Uchumi Supermarkets shares at the Nairobi Stock Exchange. I take this opportunity, to thank the staff and management of Uchumi Supermarkets for turning the company around and thereby facilitating the re-listing of its shares after four years of suspension.

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.

Throughout the 1990's, Uchumi Supermarkets spearheaded the hypermarket concept in Kenya. Indeed, it was credited for having revolutionized the retail food sector by giving customers a variety of products from which to choose.

It was also a major outlet for local manufacturers and suppliers of fresh produce, with over 2,500 suppliers, many of them local citizens. In early 2000, however, Uchumi started to experience financial and operational difficulties. As a consequence, the Capital Markets Authority suspended the trading of Uchumi shares in June 2006.

Ladies and Gentlemen,

Following this unfortunate development, my Government immediately appointed a Task force under the leadership of the Ministry of Trade to steer the rescue of the Uchumi Supermarket Ltd. The objective of the Uchumi Rescue Plan was to ensure -:

1.non-disruption of our market economy,
2.preservation of jobs,
3.support to industries and businesses that depended on the chain store; as well as
4.maintain a competitive climate for wholesale and retail trade.

Under the Uchumi Rescue Plan, my Government advanced a loan of 675 million shillings to facilitate revival. This was a show of our commitment to the development of the retail sector in recognition of its importance as one of the essential pillars of VISION TWENTY THIRTY .

Ladies and Gentlemen,

At the time it was placed under receivership, Uchumi Supermarkets was indebted to the tune of over one billion shillings. 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.

I am also encouraged that while under receivership, Uchumi turned around very successfully. The turn-around of Uchumi Supermarket is a welcome development not only to the direct stakeholders but to our economy as a whole.

Indeed, 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. Our expectations are that Uchumi will continue to set pace in the retail and commercial sector. In this regard, I take this opportunity to congratulate Uchumi Supermarket for having developed innovative products that are being viewed as a first in a fiercely competitive market. I urge players in the industry to continue introducing innovative strategies to retain their clients and grow their market share.

In conclusion, I once again thank the entire staff and management of Uchumi Supermarket for the sterling performance of the Company. I also want to thank the Kenyan public for supporting Uchumi over the years. The re-listing of Uchumi is a worthwhile gift to our country, as we mark our 48th Madaraka Day tomorrow.

With these remarks, it is now my pleasure to declare Uchumi Supermarkets shares re-listed on the Nairobi Stock Exchange.

Thank you and God bless you all.