Friday, February 6, 2015


Uchumi Supermarket Ltd (NSE:UCHM), commonly known as Uchumi, is a supermarket operator. The company’s CEO is Julius Kipngetich. The immediate former CEO is Jonathan Ciano, who before his ouster said that the devolved government in Kenya has the potential of helping the company to achieve more growth in the country. Devolution is expected to put more money in the hands of local government workers thereby increasing their purchasing power.

Operations
Uchumi Supermarket Ltd (NSE:UCHM) has operations almost all over East Africa. Besides Kenya, Uchumi’s supermarket branches are in Uganda and Tanzania. The company intends to invest more in East Africa by establishing stores in Rwanda, Burundi and South Sudan over the next few years. It has also been expanding its Kenyan operations, recently announcing new supermarket outlets in Naivasha and Lumuru. The company expects to open seven new supermarket stores in Kenya within the next 12 months.
The supermarket operator had 27 supermarket outlets in Kenya as of September 2014. It also maintained six outlets in Uganda and four in Tanzania during the same period.

In addition to the listing on the Nairobi Securities Exchange (NSE), Uchumi Supermarket Ltd (NSE:UCHM) is also cross-listed on other exchanges in East Africa. Shares of the retail giant are also listed on Uganda Stock Exchange (USE), Dar es Salaam Stock Exchange (DSE) and Rwanda Stock Exchange (RSE). Cross-listing allows local investors to hold a stake in foreign companies.

Assets
According to June 2014 valuations, the latest publicly available details, Uchumi Supermarket Ltd (NSE:UCHM) had assets worth about Sh6.9 billion ($79 million).

Investors
Major investors in Uchumi Supermarket Ltd (NSE:UCHM) include the Government of Kenya, which owns 13.40% in the supermarket operator through the Ministry of Trade. The other government stake in Uchumi is through ICDC, which owns 2.75% of Uchumi. ICDC is an investment company that holds stakes in various companies and sectors and it has government affiliation.
The other investors in Uchumi Supermarket Ltd (NSE:UCHM) are Karim Jamal, owning 7.56% of the company and KWA Holdings, which owns 4.28% of Uchumi.


Shares of Uchumi traded in the range of Sh12.10-Sh12.75 on Feb. 5.




To know the minimum amount of shares you are allowed to buy in Uchumi Supermarket Ltd (NSE:UCHM), click HERE.

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