Nairobi Securities Exchange (NSE):
Naivas Supermarkets has hired away Uchumi Supermarket Ltd (NSE:UCHM)’s Chief Operating Officer (COO) Willy Kimani. But Kimani has just gone back to his former home because Uchumi had recruited him for the COO position from Naivas as part of its restructuring process.
In a brief note, Naivas said Kimani was returning to the company as Chief Commercial Officer, an apparently new position that promotes Kimani from his earlier role at the company. Before he was poached by Uchumi Supermarket Ltd (NSE:UCHM), Kimani was Naivas’ head of ICT and Business Development.
Family feud
But Kimani is returning to Naivas at a time when the rapidly expanding family-owned supermarket operator is dogged by family disputes. One of the three brothers who own the business recently claimed in fresh court papers that his two other brothers may have cheated him out of the family business by selling it behind his back. But the other brothers maintained the company has not been sold. There have been speculations that a South African retailer seeking to expand its footprint in Kenya is interested in acquiring Naivas.
But Kimani is returning to Naivas at a time when the rapidly expanding family-owned supermarket operator is dogged by family disputes. One of the three brothers who own the business recently claimed in fresh court papers that his two other brothers may have cheated him out of the family business by selling it behind his back. But the other brothers maintained the company has not been sold. There have been speculations that a South African retailer seeking to expand its footprint in Kenya is interested in acquiring Naivas.
Will exit of Kimani disrupt Uchumi’s turnaround?
Kimani is ditching Uchumi Supermarket Ltd (NSE:UCHM) at the retailer’s greatest hour of need. Uchumi is in the middle of a turnaround and investors have been betting on its fresh leadership that includes COO Kimani and CEO Julius Kipng'etich to speed up the turnaround process of the retailer. As part of its turnaround plan, Uchumi tapped Kimani from Naivas and Kipng'etich from Equity Bank where he was the bank’s COO to become its CEO following the exit of its tainted CEO Jonathan Ciano.
Kimani is ditching Uchumi Supermarket Ltd (NSE:UCHM) at the retailer’s greatest hour of need. Uchumi is in the middle of a turnaround and investors have been betting on its fresh leadership that includes COO Kimani and CEO Julius Kipng'etich to speed up the turnaround process of the retailer. As part of its turnaround plan, Uchumi tapped Kimani from Naivas and Kipng'etich from Equity Bank where he was the bank’s COO to become its CEO following the exit of its tainted CEO Jonathan Ciano.
Uchumi Supermarket Ltd (NSE:UCHM) has not commented on the exit of Kimani and the market appeared to downplay the potential impact of his return to Naivas. Shares of Uchumi rose 4.23% on Monday to close the day at Sh3.70.
Uchumi Supermarket Ltd (NSE:UCHM) is in the process of converting about Sh1.8 billion in debt owed to suppliers into equity as part of the balance sheet restructuring. The company is also seeking a strategic investor who could end up injecting Sh3.2 billion into the company.
Privately-held Jamii Bora Bank is Uchumi Supermarket Ltd (NSE:UCHM)’s largest shareholder currently, but its stake will be diluted when the strategic investor comes in.
Nairobi Securities Exchange (NSE):
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