Uchumi Supermarkets is adopting a weekly SME and farmers business model of leasing out space from Ksh. 2,500 to Ksh. 10,000 at its Langata outlet.
The retailer says it is targeting farmers who sell fresh produce alongside small and medium enterprises (SMEs) to be able to generate income.
“The weekly SME Market is designed specifically for the interest of small and medium enterprises, allowing both exhibitors and visitors alike to forge new business opportunities,” Uchumi’s CEO Mohamed Mohamed said on Saturday.
Mohamed says it will serve as a platform for networking and product showcasing, the event aims to give existing SME’s a higher market presence in today’s competitive economy.
“Uchumi Supermarkets Plc plans to allocate shelf space for the SME products and incubate them towards growth and compliance,” Mohamed added.
Amazing day today. We were privileged to have a visit from Noreen Nthiga, SME Advisory, Executive Office of the President, here to support our SME farmers flanked by our CEO, Mohamed Ahmed. #UchumiYetu #BuyKenyaBuildKenya #SMEAdvisoryUnit pic.twitter.com/w7bANXZaSD
— Uchumi Supermarkets Plc (@UchumiKenya) January 31, 2021
In 2019, the retailer said it was banking on the franchising model to return to profitability by June 2024.
Uchumi went into insolvency on June 1, 2006.
However, under the Company Voluntary Agreement (CVA) deal, it aims to clear its KSh 3.6 billion debt.
In July, Justice Mary Kasango of the Commercial and Tax Division allowed the implementation of the CVA on condition that the Nairobi Securities Exchange-listed retailer pays all its debts within six months.
Uchumi owes Chandaria Industries Ksh 69 million, Equatorial Nut Processors Ltd Ksh 21 million, Githunguri Dairy, Interconsumer Products Ltd, and Professional Marketing Services Ltd are owed 45, 38, and 4 million shillings respectively.