Nakumatt moves goal post for share sale deal

This is why we are banking on an external investor to put in the money. In our negotiations with the potential investors we have put it across that this money will not be pocketed by any of the directors, but we will put the new money directly into our branch network expansion programme.

We have achieved what we set about to achieve, but we are still far from realising our dream. We have also changed lives as most businesses near our shops have also flourished.

For example, in Nairobi we have been able to buy from jua kali people items such as utensils, metal boxes and jiko items which we then sell at our stores.

Some of our stores also sell charcoal and this tells you that our business has also gone around benefiting the small business people who sell to us.
What we have also noticed is that the local businesses have also improved their merchandise to meet international standards and to be like some of the goods that we import. You will want to know that we stock about 60 per cent of imported goods. The other items are sourced locally.

Where are you planning to put up your new retail outlets and how much will this cost the company?

This year we are ready to roll out four supermarket stores across Kenya. Two are ready to be opened in Diani, Mombasa and on Kiambu Road. But we are also completing a construction on Langata Road, near Bomas of Kenya, where we will also have another outlet.

In East Africa, we are looking to acquire a supermarket in Uganda to add to our retail store in Kampala. We will also open a second shop in Kigali Rwanda.

We intend to use all of the $25 million equity capital to open the new retail outlets.

You seem to be focusing a lot on your Uganda and Rwanda operations. How are the two markets treating products from Kenya?

Rwanda people have supported us well. They have told us that by opening a Nakumatt store there we took to them what they were missing.

Similarly, our retail outlet in Kampala is emerging to be one of the best stores in that country and people are flocking in. Besides, our stores in Kampala and Kigali operate for 24 hours a day and we intend to repay their loyalty by opening more branches out there.

We are focusing on the Uganda and Rwanda markets because we believe in the East African Community. We want this region to open up for the free flow of goods, manpower and capital. Nakumatt has just started it off, we want other companies to cross the borders and operate in the five countries of the East African Community.

How is the retail business doing in terms of sales? Consumers have faced high price inflation as a result of global economic recession and slow economic growth in Kenya. Have you noticed any low sales as a result of the economic difficulties faced by consumers?

It’s true that towards the end of 2008 and up to the first half of 2009 things were difficult for our customers. We saw reduced sales, but this has since picked up and we project that we will have increased sales in 2010.

The economy can only get better. Our leaders must now guide this country towards the right direction that will lead Kenyans into prosperity.
We know our leaders play politics a lot but we want constructive politics that can educate Kenyans.