Nakumatt acquires Yako Supermarkets assets as Uchumi woes continue

By Steve Umidha
Nakumatt Holdings has acquired Yako Supermarkets Ltd assets in Kakamega, Bungoma and Busia at an undisclosed amount, setting the stage for its enhanced expansion in Western Kenya region.
The retailer announced the transaction Friday, following a nod from the regulator – Competition Authority of Kenya (CAK) which will now pave way for the supermarket chain to make a fresh entry to Busia and Bungoma towns.
Regional Operations and Strategy Director, Thiagarajan Ramamurthy said the retailer has already embarked on the refurbishment works for the three stores to bring them up to par with its brand standards.
The new stores, to be reopened early next month, under the branch names; Nakumatt Bungoma, Nakumatt Busia and Nakumatt Mid-Point, in Kakamega, are expected to further enhance the retailer’s market presence in the region.
“The acquisition, of Yako Supermarket outlets is fundamentally aligned to our commitment to enhance our local and regional footprint. We have proceeded to temporarily close down the stores in Kakamega, Busia and Bungoma to facilitate their remodeling, staff training and in store branding,” he said.
The acquisition comes hot on the heels as its local rival Uchumi Supermarkets continues to face hurdles in its recovery plan after Kenya Airports Authority (KAA) Wednesday claimed ownership of a prime property the retailer has put up for sale, saying the parcel of land belongs to the authority.
KAA has since threatened to move to court if the retailer does not halt its planned sale of the said land.
Last month Uchumi poached Julius Kipng’etich from Equity bank to steer the retailer’s turnaround plans in an effort to return it to profitability, following the sacking of its immediate former chief executive Dr. Jonathan Ciano for gross misconduct and gross negligence after suppliers stopped delivering goods to the retail chain’s stores because they were owed more than 1billion shillings.