Uchumi Supermarket has applied for a Ksh.500 million loan to offset a debt owed to suppliers.
The huge retailer plans to get the funds from Kenya Commercial Bank, where it has applied.
This is not the first time the business, started by the government in 1975 to to enable the supply of manufactured goods and products in Kenya is facing financial problems.
In 2006, Uchumi was almost sinking in debts which it was unable to pay.
As a result, it was put under receivership between July 2006 and March 2010.
Although the government stepped in to help the sinking giant, the ride up has not been an easy one, especially due to tough competition from private giant retailers, established in Kenya and East Africa including Tuskeys, Nakumatt, Ukwala and Naivas.
It has however managed to remain in the market and even extend to Uganda and Tanzania.
In 2014, Uchumi had to borrow Sh.405 million from Co-operative Bank in September to pay its suppliers.
The Supermarket's Chief Executive Officer Jonathan Ciano, who has been credited with saving the company from a total collapse confirmed the loan application to The Nation.
He said that the board of directors had approved of the move, which is aimed at clearing the dues owed.
