Over 253 former Uchumi supermarket employees who were sacked due to the retailer's financial distress have received a major boost after a parliamentary committee directed management to pay them Sh521 million.
The amount will cover the former employees’ gratuity, terminal benefits and salary arrears as at the time they were sent packing by the retailer.
The National Assembly Public Petitions Committee has adopted a petition filed by the former employees calling for the settlement of their dues by the management of the supermarket.
Members of the National Assembly during a past sitting.
Photo credit: Dennis Onsongo I Nation Media Group
The petition was presented by former employees of Uchumi Supermarket in June this year who sought the intervention of the National Assembly through the Public Petitions Committee to ensure transparency in the management of lease proceeds and other company assets.
“The committee recommends that dues owed to former employees totaling to Sh521 million be fully settled as a matter of priority,” reads the report.
The committee has also directed the Chief Executive Officer of Uchumi Supermarket to convene a meeting with the former employees within 30 days in order to provide a breakdown of amounts owed to each of them.
“A signed consent by all parties be filed with the National Assembly within 14 days thereafter,” reads the report.
On redundancy pay, the former employees’ benefits will be calculated at 15 days for each completed year of service, computed as one-half of one month’s salary multiplied by the exact number of years of service.
Uchumi Supermarkets' branch along Agha Khan Walk in Nairobi as pictured on January 12, 2020.
Photo credit: File | Nation Media Group
In accordance with the Employment Act, 2007, the employees will also be paid for outstanding accrued leave days multiplied by the daily leave rate. This will be derived by dividing the employee's gross monthly salary by the annual leave.
However, where an employee had taken leave in excess of entitlement, the excess is treated as a deduction from the terminal dues.
The former employees will also receive all their outstanding salary due for periods worked but unpaid, as recorded in the company’s payroll records.
The committee observed that the outstanding employee obligations were not disputed by the company or in any court of law and therefore should be on top of the management's financial priorities.
There has been a delay in settlement of employees’ dues due to the inability by the supermarket to dispose of a parcel of land that was earmarked for that purpose.
The petitioners submitted that despite numerous engagements with the appointed administrators, the courts and processes established under the Company Voluntary Arrangement (CVA), their claims for unpaid salary arrears, gratuity and other terminal benefits remain unresolved.
A Company Voluntary Arrangement (CVA) is intended to provide an orderly, transparent and judicially supervised framework through which a financially distressed company can continue trading, restore commercial viability and progressively satisfy creditor claims from the value generated by a recovering business.
The petitioners told the lawmakers that due to the delay in unpaid salaries, they are unable to meet their medical expenses and support their children’s education. It is also reported that some former staff have passed on before receiving their dues.
The petitioners told the committee that statutory remittance to the National Social Security Fund, loan deductions and Sacco contributions were not indicated in their termination letters.
Uchumi Supermarkets had experienced prolonged financial distress since 2013, which led to the closure of operations, employee redundancies and termination of employment for numerous staff members across the country.
So far, Uchumi has managed to open two new branches in Kitengela and Unicity Mall along Thika Road and made a profit of Sh10 million in 2025, part of the money has been used to settle the former employees’ dues.
