Uchumi Supermarket is facing auction of its goods and equipment assets held at the closed Taj Mall branch in Nairobi following a debt of Sh. 50 million in rent arrears. According to a report appearing in Kenya’s Daily Nation newspaper, Uchumi started defaulting on paying rent in September last year.
Uchumi was paying slightly more than Sh5 million in rent and service charges every month for the Taj Mall outlet.
“We have given them (Uchumi) payment options but they claim that they do not have money. We are left with no option,” said businessman Ramesh Gorasia, who is one of the Taj Mall owners.
The Uchumi property inside the closed Taj Mall branch is now set to be sold by Moran Auctioneers on May 18.
The retailer had signed a 10-year lease with the landlord that was set to expire in 2021.
“We closed the branch a while ago, but also remember it was also on a road reserve. I’m not in a position to comment on the auction right now, maybe you can check with us in one or two days’ time when our legal team will advise us on the way forward,” Uchumi Head of Marketing Race Musumba said.
