Considering Nakumatt's expansion plans across E&C Africa as well as its intention of going public in 2009... this seems an ideal opportunity to expand & gain instant market share in Uganda .
Uchumi has one branch in Kampala but can ill-afford to expand further... After what seems to be another failed attempt to raise additional funds from existing shareholders, it may have to shut down OR find a strategic investor to turn it around.
And just 10 years ago,
Uchumi Supermarkets was one of Kenya's most profitable firms, under the then MD -
Suresh Shah, paying hefty dividends... but it went downhill fast after
chris kirubi & company took over...
That opened the door for the rapid expansion of Nakumatt since many suppliers quit supplying Uchumi. Even though Uchumi has a branch in Kampala, the
continuing inancial problems at home will affect them in Uganda... whereas Nakumatt is raring to expand in East Africa.
