According to Business Daily Africa, Carrefour Kenya has repaid the 1.53 billion Kenyan Shilling loan it obtained from its parent firm which is based in Dubai; Majid Al Futtaim.
The loan repayment which was done way before its contractual maturity, is seen by observers as an indicator of the financial strength and growing strides of Carrefour Kenya; Majid Al Futtaim’s Kenyan subsidiary.
The 1.5 billion Kenyan Shillings loan, was given to Carrefour Kenya, by Majid Al Futtaim in 2016. The loan was to be used by the retailer, to fund its expansion plans and was to be paid back within a 2-year period that was to start in 2018.
Disclosures in Majid Al Futtaim’s 2019 half year results however, revealed that the retailer; Carrefour Kenya, has repaid the loan in full.
Majid Al Futtaim’s half year financial report read, “In 2016, term loan facilities of GEL1,530 million (1.5 billion Kenyan Shillings) and GEL10.9 million (382 million Kenyan Shillings) were obtained by the Group’s subsidiaries in Kenya and Georgia respectively. These facilities were paid and settled by the Group during the period prior to their contractual maturities.”
Earlier on in 2019 Majid Al Futtaim which is the exclusive holder of Carrefour’s franchise in Kenya, made it known that it had recorded a 71 percent increase in its local sales, moving from 8.11 billion Kenyan Shillings in 2017, to 14 billion Kenyan Shillings in 2018, further proof that its expansion move, was yielding positive results.
The growth of Carrefour in Kenya has been simultaneous with its expansion move, which led to it opening seven stores in Nairobi. The retailer expanded its presence in Kenya, by taking over the spaces which were previously occupied or used by supermarkets with declining fortunes (Nakumatt and Uchumi) and the opening of new spaces all together, to cash in on the markets that have not been adequately catered for.
Following its expansion move, the retailer also renovated its stores at the Junction Mall, Thika Road Mall (popularly known as TRM, as well as its store at Village Market, The renovations have boosted the 3 stores and also resulted in an increase in their products offered, as all 3 branches previously operated as mini marts.
The increase in its local sales, has put the retailer in the multi-billion Kenyan Shilling Club. Since the decline of Nakumatt, the company has now become the major alternative for customers in Kenya.
The entry of multinational chain retail stores into the Kenyan market, has tightened competition between the new players and the local family owned retailers.
Carrefour, is a French multinational retailer currently headquartered in Boulogne Billancourt, France, in the Hauts-de-Seine Department near Paris. As at the end of 2016, the retailer had 12,300 self-service shops (including 1,528 hypermarkets), making it one of the largest hypermarket chains in the world.
As at 2018, the company’s total assets are valued at €47.37 billion (5.4 trillion Kenyan Shillings).
Carrefour Kenya’s current branches are located at Nyayo roundabout, Junction Mall, Village Market, Two Rivers Mall, The Hub in Karen, Sarit Centre in Westlands and Thika Road Mall (TRM).
