Why does the government waste money (taxes) on this monkey? It is not a utility company and makes losses every year. :mad:
Uchumi is a waste of taxpayers money but the government keeps bailing it out. Is this government serious about fighting Poverty if it keeps throwing good money after bad money?! NO
Uchumi should die a slow death.
Quick death, slow is expensive
Middle class and malls and the hype of retail
The quicker Uchumi dies the better .
Another thing that came to me is that Uchumi is not a regional entity like Mumias Sugar. There can be no political reprisals in refusing to resuscitate it. It’s been dead.
Jubilee development will rescue it from its death bed. Stupid economic calculations.
The only sensible thing to keep Uchumi afloat is because of the ecosystem around it. There are workers supporting their families using Uchumi’s salary. There are suppliers who depend on Uchumi too. The suppliers have loans and some are in the manufacturing industry. It is in the best interest of the nation to keep Uchumi afloat especially now that Nakumatt is already down. The effects of both failing might not be so catastrophic but it’s good to keep this one going for sometime.
Your logic is strange. Very strange.
Simple. Kuna watu wanakulia hapo na Govt Bailouts. Creative accounting huwezi kosa in their books.
Ingekuwa a private entity, ingekuwa imekufa kitambo sana kama ukwala.
Inafaa kuuzwa tu. Cronies wamekula imebaki mifupa tu.
This is a very competitive industry.
Uchumi is on life support, Nakumatt is as good as dead, Tusky 's has never made a profit since 2012 and Carrefour is still to turn a profit despite the huge volumes of traffic it enjoys
Agreed in totality, it’s like those unserviceable vehicle you see lying around government offices, they are used to siphon off funds.
Ukwala never died.It was acquired by Choppies
Do explain.
What you described is no different from advising a company to continue operating despite the losses just because what has been sunknin is enormous. Concorde fallacy they call it. You don’t throw good money after bad money.
Think along the lines of Fed keeping the likes of BOA, Citi and GM in business after the global financial crisis. The government had to not because the businesses were no longer profitable but what lay ahead if the companies were not bailed out.
Your point, though valid, is too pedestrian for the argument at hand. What is being sunk into Uchumi is incommensurate to the benefits to be realised. The Fed had to bail out the likes of GM because the impact on world economies was tremendous. The collapse of Uchumi will only affect a handful of individuals. Think what 800 million can do for an economy if invested wisely. Secondly, their management had a sound plan for the companies, including the exit of senior management, hence the Fed’s intervention. Can we say the same about Uchumi?
The companies you mentioned had to pay back the money in addition to other terms. Do you really think uchumi is in a position to pay back kama suppliers pekee wamewashida.