Uchumi suppliers fret about pay

Dar es Salaam. Uchumi and Nakumatt Supermarket suppliers are worried that they may lose their money after the Kenyan government reportedly informed them to take legal action in the Sh14 billion claim.

The suppliers’ Union chairman, Mr Joseph Mlay, told The Citizen yesterday that they have been informed by the Kenyan government to file a case in court to seek their dues because the country (Kenya) has no mandate of paying individuals in such cases.

According to Mr Mlay, going to court was not the best option best option considering that the Kenyan companies have no properties in Tanzania.

Mr Mlay said the new development is contrary to the earlier pledge by the government of Kenya that it would have paid them.

The commitment followed reports that the government of Kenya, which holds a 14.6 per cent stake in Uchumi, approved a total of Ksh350 million (Sh6.2 billion) for payment of the company’s suppliers, who were left stranded after the retail chain suddenly ended business in the country.

Further he revealed that in January, this year, both Tanzanian and Kenyan governments revealed that the payments of 251 suppliers had been verified and that another payment for 51 suppliers would be verified in order to effect the payment.

However, Mr Mlay said that despite the commitment, Kenya permanent secretary for Industry and Trade Chris Kipto told them in a bilateral meeting that was held in July that his government would not be able to pay the funds because they were not mandated to pay individuals.

“We feel that going to court will not be in our favour as it appears that Uchumi has no property in Tanzania for disposal so it is a lost game,” he said. He stressed that during last year’s bilateral meeting, which was chaired by permanent secretaries from both Tanzania and Kenya, they were cautioned about going to court especially taking into consideration that they are good neighbours.

Following the developments, he said that the suppliers were now looking forward to President John Magufuli intervention to save almost Sh14 billion from the two Kenyan companies.

The Kenyan Uchumi supermarket ceased its operations in the country in 2015 without settling its payments to some 300 Tanzanian suppliers and later in 2017 Nakumatt also closed business.