Companies

Uchumi ordered to pay Uganda suppliers Sh36m

uchmi

Uchumi Garden City, one of the outlets closed in Uganda. PHOTO | FILE

A court has ordered Uchumi Supermarkets Uganda to pay more than Sh37.5 million (about USh1.2 billion) for recovery of unpaid supplies made to it between 2012 and 2015.

Mr Thaddeus Opesen, the Registrar of the Commercial Court, ordered Uchumi to pay Zebu Emporium USh904 million for supply of goods imported from China.

The order came after Zebu sought orders against Uchumi for payment of lost income, loss of foreign exchange, general damages, breach of contract and costs incurred.

In a separate case, the retailer has been sued for USh320 million by Trinity Textiles Uganda after it similarly failed to honour a payment agreement for electronic items supplied to its outlets.

Uchumi operated a chain of supermarket outlets in Kampala, Gulu, and Mbale.

However, the Kenyan retailer, has since closed doors in Uganda and Tanzania, to concentrate on its home market.