One of the largest retailers in Africa, Shoprite’s, has announced a formal process to stop all its operations in Kenya.
Top Gist Portal Understands that the supermarket group said it would leave the East African country two years after it began operations in the country.
The company said its Kenyan business had underperformed on Tuesday.
“Kenya continued to underperform compared to our return requirements,” the company said after posting a 16.6 per cent increase in annual group earnings.
The South African firm renegotiated 48 lease agreements by either reducing rent payments or converting them to local currency, said Pieter Engelbrecht, Chief Executive Officer.
The group also restricted capital allocations to its supermarkets outside of South Africa as part of the ongoing review of its operations in Africa.
Shoprite, while declaring a final dividend of 227 cents per share, stated that it had traded ahead of expectations since the beginning of July.
The company claimed that the decision to exit Kenya was influenced by the ripple effect of the COVID-19 pandemic on its operations and earnings.