Through the National Land Commission, Kenya Defense Force will acquire 3.7 acres of Uchumi Supermarket asset worth Ksh500M along Langata road.
According to reports, NLC is preparing papers that will see KDF take charge of the land together with the buildings on the property becoming military property and used for militarisation.
KDF is eyeing the property that is adjacent to Wilson Airport, which the United States government warned of being vulnerable to terrorist attacks.
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The cash-strapped retailer is hoping to ride on the acquisition of the property to make a turnaround following a Sh172million defaulted loan to UBA bank.
The retailer stated that the High Court in the Company Voluntary Agreement stopped planned sale and debt recovery of outstanding loans and rents.
In the CVA, plans were set in motion where the supermarket and 121 suppliers were to form a committee and work on how to settle the Sh4.2 billion on time.
"For now, we cannot comment further on the value of compensation until we receive the award letters for compensation from the NLC. We are confident that the expeditious completion of the process will go a long way in implementing the turnaround strategy," Uchumi CEO Mohamed Ahmed Mohamed stated.
The planned move is not the first time KDF has been involved in trying to change government companies' fortunes. On Monday, November 8, the Labour court by Judge Kebiria Ocharo stopped the takeover of Kenya Medical Supplies Authority(KEMSA).
