Shoprite Holdings; Africa’s biggest retailer, has reportedly borrowed 571 million Kenyan Shillings (which is 84 million Rand), from Stanbic Bank Kenya.
The loan will be channeled towards the company’s expansion plan which has already led to the company opening two stores in Nairobi and a third being expected this month (August) in Mombasa.
The loan was revealed in the South African retailer’s latest investor update for the financial year which ended in June 2019.
The loan from Stanbic Bank, is part of the 79 billion Kenyan Shillings debt it closed the financial year with, as it had opened 126 additional stores in the region including in Kenya, and created 3,175 new jobs.
According to Shoprite, the financial year which ended in June 2020, will see the completion of a number of strategic projects that have been on its radar for a number of years, adding in an update that, “We are critically assessing capital spend in the pursuit of growth that is cash generative, return accretive and strategically beneficial.”
The South African retailer has so far, not yet responded to queries regarding the loan’s borrowing rate, as well as about the repayment period.
While the General Manager for Shoprite Kenya; Andrew Mweemba told Business Daily Africa that the retail giant is set to open two new stores in Kenya, he refused to disclose the costs of the new stores.
Mr. Mweemba however revealed the locations of the new stores stating that, “There are two new stores coming — one opening in Nyali mall next week and another in Waterfront Karen next month.”
In July 2019, the retailer giant announced that a lease agreement had been concluded with Karen Waterfront which is owned by the Muguku family, adding that it would follow up on other opportunities in Kenya.
Shoprite currently has stores operating at Westgate Mall and Garden City Mall.
City Mall in Nyali, Mombasa kicked Nakumatt out of its premises in March after the troubled firm accumulated Sh27.8 million in rent arrears.
Shoprite took up the space in Nyali which was previously owned by City Mall who acquired it after Nakumatt left as a result of the accumulation of 27.8 million Kenyan Shillings in rent owed.
Shoprite also has operations in Tanzania and Uganda with a strong presence in Central Africa, Southern Africa and West Africa, with plans to further penetrate the market in East Africa.
