Uchumi share price falls as it sinks Sh2bn deeper in the red

Retail chain Uchumi sank Sh2 billion deeper into the negative equity position, according to the belated 2016 financial results that were released late Monday, even as its auditors warned that the insolvency could be worse because the values of some assets are doubtful.

The erosion of Uchumi’s balance sheet and core retail business means the government must take quick and decisive action to bail out the retailer or offer guarantees to strategic investors who have been approached to provide new capital.