Kenya’s Uchumi Supermarket CEO Julius Kipng’etich has said the retail chain is undertaking re-organization that will render 253 positions redundant.
The changes will see Uchumi close its Nairobi Taj Mall, Embu, Eldoret Sugarland, Nakuru and Kisii outlets in the country.
The closure will help reduce operation costs and enable Uchumi concentrate on a leaner structure suitable for the business environment, he said in a statement on Monday.
“Uchumi is well on the track to recovery. The move is expected to hasten the retail chain’s rise to sustainability,” he said.
“Their closure will enable us channel our resources to fewer branches and optimise operations for maximum gain.”
The chief executive said the supermarket has adhered to all required legal and statutory requirements in implementing the decision.
Uchumi shut operations in Uganda and Tanzania in October 2015 to stem further losses.
Kipng’etich said at the time that the two subsidiaries had not made any profits in five years and had been draining parent operations.
The retailer had initially closed two of its branches in Uganda – Kabalagala and Nateete- in Kampala.
