Companies

Uchumi recovery in focus as COO exits, citing lack of growth opportunity

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Outgoing Uchumi Supermarket chief operating officer (COO) Willy Kimani. PHOTO | FILE

The exit of Uchumi Supermarket chief operating officer (COO) Willy Kimani barely eight months into the job has cast a dark shadow on the retailer’s recovery efforts.

Uchumi chief executive Julius Kipng’etich had head-hunted Mr Kimani from rival retail chain Naivas and made him his COO hoping to tap his experience in the industry to drive his turnaround plans for the troubled company.

His exit leaves Mr Kipng’etich without a key lieutenant even as he struggles to return the Nairobi Stock Exchange listed retailer to profitability.

Mr Kimani said in an interview he left Uchumi because it no longer offered him “an opportunity to grow.”

“Its quite clear they are on the right track but what they need is stabilisation and they are not on the growth track, so right now I add more value at Naivas,” said Mr Kimani, who is heading back to Naivas as the chief commercial officer.

He was previously the retailer’s head of IT and business development.

Uchumi has been shrinking its branch count, laying off staff and cutting costs to stay afloat.

READ: Jamii Bora says Sh500m Uchumi buyout was a con

The retailer is facing a winding up suit on Friday which it has vigorously fought against, including by trying to persuade the litigants to drop the case and convert their debt into equity.

Mr Kipng’etich left Equity Bank in September last year to take up the Uchumi job. Uchumi says it remains committed to the revival strategy.

“Suppliers have adopted the deed of settlement and Uchumi will pay the first ESCROW cheques to suppliers next week. So far more than 100 suppliers have resumed supplying,” Uchumi said.

The supermarkets also needs a cash injection to boost its operating capital. The government has teamed up with other shareholders in a bid to craft a bailout plan.

Uchumi says it presented to the government a revival plan seeking its support. The planned conversion of debt into equity is subject to regulatory approval.