DCI takes over Uchumi head offices in Nairobi

What you need to know:

Uchumi’s landlord had on October 2 locked the retailer out of the premises due to non-payment of rent but it now says in fresh filings at the High Court that the DCI had taken over the building.
The lockout has seen Uchumi file two different suits in court for orders forcing the landlord to grant the retailer’s employees access to the premises.
The lawyer representing Uchumi on Monday told the court that the retail chain was aware that the DCI had taken over the building but did not know the motive behind the move.

The troubles facing retail chain Uchumi Supermarkets #ticker:UCHM have deepened after the Directorate of Criminal Investigations (DCI) took charge of its headquarters.

Uchumi’s landlord, the Kenya National Trading Corporation (KNTC), had on October 2 locked the retailer out of the premises due to non-payment of rent but it now says in fresh filings at the High Court that the DCI had taken over the building.

The lawyer representing Uchumi on Monday told the court that the retail chain was aware that the DCI had taken over the building but did not know the motive behind the move. “We stopped Uchumi to access the premises. We have negotiated with Uchumi but the director of criminal investigations locked the premises, so we do not have access,” the lawyer representing KNTC, told Justice Mary Kasango.

The lockout has seen Uchumi file two different suits in court for orders forcing KNTC to grant the retailer’s employees access to the premises.

Uchumi claims that the decision to deny its managers access to the premises is against the October 2 court order that suspended all judgments, decrees, attachment of properties, or distress for rent against it.

There is no indication of how much money Uchumi owes the KNTC, which is yet to respond to the petition.

The High Court gave the KNTC two days to respond to Uchumi and return to court on October 25 for further directions.

Uchumi claims that locking up its headquarters is also hampering its participation in a winding-up petition filed by Githunguri Dairy Farmers Co-operative Society last month and frustrating recovery efforts. Githunguri Dairy is seeking to wind up Uchumi over a Sh44.8 million debt.