Dr.Julius Kipingetich has resigned as the CEO of troubled national retailer Uchumi according to a statement from the board.
The supermarket chain has been the subject of several attempted government bail outs but has struggled to stay solvent amidst an economic downturn.
A cocktail of factors have pushed the supermarket into a financial crisis, which saw its share price on the Nairobi Securities Exchange plunge from Ksh19.15 ($0.19) in February 2013 to as low as Ksh3.15 ($0.03) per share earlier in the year.
The company at a point put up its lands in Kasarani for sale in a bid to raise $18 million.
Uchumi was listed on the NSE in 1992 and has struggled to stay viable in that period.
Uchumi’s turnover fell to Ksh5.2 billion ($52 million) in 2005, from Ksh8 billion ($80 million) in 2004, coupled with a decline in customer numbers. Its loss after tax increased to $12 million), from $7 million.
Uchumi executed a rights issue, raising $12 million. The firm was put under receivership in June 2006 and its shares suspended from trading on the NSE.
It was lifted in 2010 after KCB, PTA Bank and the government converted their debt into equity. It was relisted on May 31, 2011.
The board has named the retailer's Chief Financial Officer,Mr.Mohamed Ahmed Mohamed as interim CEO while a search goes on for a substantive CEO.
*This article was written with additional information from Nation.co.ke