[Source: Business Daily, by Brian Ngugi]
Troubled retail chain Uchumi Supermarkets has informed the capital markets regulator of the ongoing land dispute between it and the Kenya Defence Forces (KDF), even as it maintains that it holds the original title deed to the prime parcel on Thika Road.
KDF has occupied the 20-acre land even before resolution of the ownership tussle. The land in Kasarani, adjacent to the Thika Road Mall, is valued at an estimated Sh2.8 billion.
The Nairobi Securities Exchange-listed retailer has also hinted that it is ready to move to court to defend its claim to the land.
“All options are being weighed at the moment. We are not at liberty to disclose status at the moment,” said Uchumi in a statement.
KDF has moved its equipment to the disputed land, creating a standoff with the cash-strapped retailer.
Public listed companies are required to report and publicise any material changes that could affect their financial position in the interest of keeping investors informed.
Uchumi says that KDF has not formally informed it about its claim of ownership to the piece of land. “The company further indicated that as and when such claim is made to the company, necessary action would be taken and the relevant stakeholders, including the CMA will be notified.”
However, Uchumi, whose previous attempts to sell the land had hit legal headwinds, added that it is engaging KDF over the ownership dispute.
Uchumi had already signed a sale agreement with a church group, Jewel Complex Limited, which had committed to buy the land for Sh2.8 billion.
[Full article: Business Daily, by Brian Ngugi]
