A 20-acre prime parcel of land located in Kasarani, near the Thika Superhighway is cause of a bitter row between troubled retailer Uchumi supermarket and Kenya Defence Forces.
To make matters worse, KDF has moved its military equipment on the disputed land, creating a serious standoff with the cash-strapped retailer.
Uchumi has been banking on selling the land to turn around its dwindling fortunes.
According to Business Daily, the Nairobi Securities Exchange-listed Uchumi had already inked a deal with Jewel Complex Limited to sell the land at Sh2.8 billion, which offered its suppliers and creditors some hope for payment of their dues.
However, the transaction with the church group suffered a setback after the High Court refused to strike out a case that Sidhi Investments had filed against Uchumi in 2005, claiming that the retailer reneged on a sale deal after receiving 10 per cent payment for the land.
“The Roysambu KDF Camp is on Ministry of Defence land; the issue of laying claim to a military camp does not arise. The onus is on the claimant to provide evidence,” KDF spokesperson Colonel Paul Njuguna is quoted by Business Daily.
Uchumi, whose previous attempts to sell the land had hit legal headwinds, says that it is engaging KDF over the ownership dispute.
A visit to the land adjacent to the Thika Road Mall shows excavation is ongoing, with tents already put up and a perimeter fence erected. Military vehicles used to transport personnel and equipment are strategically located at the entrance.
Sand bags are also placed in the compound.
This is just one of the many battles Uchumi is currently engaged in.
Uchumi disclosed in the court documents that it is fighting a record 45 legal suits before the magistrate’s courts, the High Court and Tribunals – all arising from its inability to pay debts.
Over 30 companies have so far joined the winding up petition filed by Githunguri Dairy.
NSE investors remain in the dark as the troubled retailer is yet to publish its financials.
The cash-strapped retailer has given its suppliers, bankers and creditors two stark choices; either take 30 percent of what it owes them – and give up an estimated Sh2.5 billion – or, failing that, be prepared to lose all their money.