Ukwala Supermarket Limited, a once popular retail chainstore headquartered in Nakuru, is on the brink of dissolution after it was gazetted by the registrar of companies among 32 companies set to go under.
Joyce Koech, the Registrar revealed that Ukwala Supermarket would cease to operate in December 2024 after accumulating large debts. The situation spells unprecedented doom for thousands of Kenyans who depended on the supermarket as a source of livelihood.
She invited Kenyans who opposed the supermarket’s dissolution to state reasons in line with the Companies Act.
“Pursuant to Section 897(3) of the Companies Act, the Registrar of Companies gives notice that the names of the companies specified hereunder shall be struck off from the Register of Companies at the 11th October 2024 the Kenya Gazette notice 4589 expiries of three (3) months from the date of publication of this notice, and invites any person to show cause why the companies should not be struck off from the Register of Companies,” read the gazette notice.
In February 2019, Ukwala Supermarket made business news headlines when it applied for a liquidation of its assets in court over a Sh. 1 billion loan it owed creditors.
The chain store also owed KRA Sh. 840 million in taxes at the time of the liquidation. It also had unending financial obligations to creditors, suppliers and employees.
“The company is applying to be liquidated because of its indebtedness and inability to meet its financial obligations to creditors, suppliers, and employees and the liabilities far outweigh the assets both fixed and movable,” Ukwala managing director Vijay Jayantilal noted in past court documents.
As per the Companies Act, the directors or a majority of the company shareholders can apply to cease operations through the registrar of companies. The registrar of companies failed to give reasons as to why the other 31 companies are on the dissolution list.
At one point in the past, Ukwala Supermarket was ranked as the fifth largest supermarket in Kenya behind Nakumatt, Tuskys, Naivas and Uchumi. Only Naivas has managed to remain in business and operate many branches in the country over the years.
