An Uchumi supermarket branch in Bairobi. Photo/FILE
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The position was previously held by Jeff Nchaga and it was not immediately clear whether he left the company or has taken a new role at the retailer.
Uchumi Supermarkets has started the search for a new head of its Ugandan operations, as it steps up its regional expansion plans. The retailer says it is looking for a country manager for Uganda where it has six branches.
The position was previously held by Jeff Nchaga and it was not immediately clear whether he left the company or has taken a new role at the retailer. “The country manager will be in charge of the subsidiary company business operations,” read a notice by Uchumi calling for applicants.
“The (person) will be responsible for strategic direction, control, and overseeing of country operations.”
Unlike other Kenyan multinationals that have appointed chief executives to head their regional subsidiaries, Uchumi relies on the country managers who report to its CEO Jonathan Ciano. Its country manager for Tanzania is listed as Chris Lenana.
The retailer is seeking a larger presence in the regional market, betting on increased consumer spend to drive sales at the new stores it has opened or plans to open.
Uchumi earlier this year opened four stores in Kisumu, Maua, Juja and Syokimau. Besides expanding in existing markets, the retail chain has ambitions of venturing into Rwanda and South Sudan in the medium term.
Widen presence
Uchumi’s expansion comes amid similar moves by its rivals Nakumatt, Naivas and Tuskys as retailers rush to widen their presence in strategic urban areas in Kenya and beyond.
The expansion is being funded by the Sh300 million the listed retailer recently borrowed from the government. Uchumi is also preparing to make a cash call that will see it offer up to 100 million shares in a regional rights issue.
The company was scheduled to raise up to Sh1.5 billion in a rights issue last month, but this has been postponed to September to allow the Treasury to source funds for the cash call. The government is the single largest investor in the retailer with a 13.4 per cent stake.
The fundraising will target investors in Kenya, Tanzania, Uganda and Rwanda securities markets. The firm’s latest expansion raises the stakes in the local and regional retail market where its rivals Nakumatt, Tuskys, and Naivas are also expanding through acquisitions or start-up operations.
The retailers are fighting for a larger number of outlets in high-traffic locations in the major cities in Kenya, Uganda, Tanzania and other Eastern Africa markets. Uchumi’s new four branches have raised its total branch network in East Africa to 34 as its top rival Nakumatt races ahead.
Nakumatt earlier this year opened a store at the Acacia Mall in Kampala, Uganda, and another one in Tanzania, raising its total outlets in East Africa to 49. Nakumatt, the country’s largest retailer, is also set to open two other stores in Tanzania to complete the takeover of three Shoprite stores in the neighbouring country.
