Five top officials of the Jesus Winner Ministry Church in Roysambu are set to be the new owners of Uchumi’s multi-billion shilling Kasarani land. The private limited company at the centre of the Ksh. 2.8 billion transaction, Jewel Complex Limited, is majority owned by Edward Mwai Kiongo who is a leader at the church.
Shareholders of the firm include Edward Mwai Kiongo who holds 36.36% Paul Gichohi Mutune with 9.09% ownership while Agnes Wanjiku Kiongo, Raphael Mwiti Thiaru and James Kiongo Mwai all hold 18.18% shares each.
Jesus Winners Ministry is a popular church among the political elite that hosted President Uhuru Kenyatta and his Deputy William Ruto for prayers during their last church service, two days before the August 8 election.
Court filings show that the struggling retailer has entered into an agreement with Jewel Complex Limited to sell the land at Ksh. 2.8 billion. It is reported that a Ksh. 330 million deposit has already been paid on the underway transaction.
Details of the retail chain’s land deal are revealed in documents that UBA Bank, one of the creditors, has filed in court seeking a share of the sale proceeds to clear an outstanding loan.
“Kasarani Mall Limited has entered into an agreement for the sale and purchase of the said land reference number 25544, Nairobi dated September 17, 2018 for the sum of Sh2,800,000,000 with Jewel Complex Limited,” Maureen Gacheru, UBA Bank’s legal officer, says in court documents.
Kasarani Mall Limited is a subsidiary of Uchumi Supermarkets through which the retail chain owns the land.
Uchumi, which owes suppliers over Ksh. 3.6 billion, has been banking on the sale of the land to turn around its fortunes but the money has been slow in coming because of challenging approval processes.
However, even after the sale of the land, Uchumi will still need to secure additional funding to help it out of its current financial distress.
While Nakumatt is trying to find their way back to the market, do you think Uchumi will ever make a comeback?