Uchumi has proposed that suppliers take 50 per cent cash and 50 per cent in shares. It would be far better to offer the suppliers 50 per cent cash and promise the balance of 50 per cent in six months time. Uchumi ran into serious problems last year when it could not pay the Sh3.6 billion it owed its suppliers. Suppliers are reluctant to start sending their products to Uchumi and the shelves remain bare (see Page 18). However, one supplier went to court seeking to wind up Uchumi and the sale is now stalled.

Source: The Star May 23, 2016 23:56 UTC