The sale of 25 per cent stake in regional retail chain, Nakumatt Holdings, will not affect operations of its Rwanda subsidiary, according to the firm.
Reports from Nairobi indicate that the retailer is set to receive over $75 million from a foreign investor to service its mounting debt and pay suppliers. The family-owned retailer, the largest in East Africa with 63 outlets in Kenya, Rwanda, Uganda and Tanzania, has struggled to pay suppliers, with its Uganda outlets experiencing stock-outs in recent months.
However, Adan Ramada, the Nakumatt country manager, yesterday said the sale will not “in any way affect the operations” of the entity in Rwanda.
“This is a business plan and that’s still being negotiated. Rwandans should know that Nakumatt is here to stay and we are currently expanding operations in the country,” Ramada said in an interview with The New Times yesterday.
In December, the retailer opened a third branch in Rwanda in Kagugu, a Kigali suburb.
This is part of the firm’s expansion plans that could help create over 100 new jobs in addition to the 250 local employees working with the retailer in Rwanda currently.
Nakumatt had also planned to setup a $20 million project, known as the Gateway Mall, in Kigali. The development of the property was going to be undertaken in partnership with Virunga Property Development, a local real estate firm.
Meanwhile, the company will not be restructuring as earlier reported, but will rather continue expanding its presence in the country and across the region, Ramada said.