Shoprite to Close its Business in Kenya

South African retail giant, Shoprite Holdings, has announced plans to totally shutdown its business in Kenya by the end of December this year.

The supermarket group said it will be leaving the East African country just about two years after it began operations in there.

On Tuesday, the company said its Kenyan business had underperformed.

“Kenya has continued to underperform relative to our return requirements,” the company made this known after posting a 16.6 per cent rise in its annual group earnings. Shoprite also had to renegotiate 48 rental agreements by either reducing rent payments or converting them to local currency, Chief Executive, Pieter Engelbrecht, said.

The holding group has also made moves to restrict capital allocations to its supermarkets outside of South Africa, as part of an ongoing review of its operations in Africa.

In all of these, Shoprite has declared final dividend of 227 cents per share, showing that it had traded ahead of expectations since the beginning of July.

The company said the decision to exit Kenya was influenced by the effects of the COVID-19 pandemic on its operations and resultant earnings.

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Random African

Random African loves writing about the African continent. He is consistently in touch with happenings in every part of the continent and derives joy from providing fresh and crisp information for his audience.

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