Tuskys Pays Sh2.7bn to Suppliers in June, Now Plans to Sell Majority Stake

Tuskys supermarket has paid its suppliers’ Ksh. 2.7 billion following an order made by the Competition Authority of Kenya (CAK).

Through a statement seen by Inversk, CAK said that Tuskys has issued documents showing that the retailer has made payments to its suppliers amounting to Sh2.77 billion in June 2020, as per CAK’s order.

The two (CAK and Tuskys) had four meetings over to review the submitted documents by the Tuskys about the proposed settlement plan made.

“The Authority further required Tuskys to submit a debt settlement plan for all debt owed to suppliers over ninety (90) days, and commence honoring its commitments, while prioritizing distressed suppliers and those supplying FMCGs,” CAK Director Wango’mbe Kariuki said in a statement on Monday.

The retailer also informed CAK that it is exploring other funding options including seeking a strategic investor by 31 July, 2020.

“The authority took note of those initiatives and has thereof committed that if the retailer opts to seek a strategic investor, the authority shall within 14 days and in accordance with the provisions of the Competition Act, consider and issue a determination upon submission of a merger/acquisition application,” CAK added

“The Authority took note of these initiatives and has thereof committed that, if the retailer opts to seek a strategic investor, the Authority shall within fourteen (14) days, and in accordance with the provisions of the Competition Act, consider and issue a determination upon submission of a merger/acquisition application,” the statement added.

In recent months the retailer has been operating with empty shelves with employees in some branches spreading out furniture and other slow-moving commodities on the ground floor.

The CAK further said that it will continue to interrogate the financial statements and management accounts presented by Tuskys. It also ordered the aggrieved suppliers to present their complaints for them to be able t establish an accurate debt portfolio for Tuskys supermarket.