COVID-19 Impact: Tuskys Writes to Supplier, Landlords and Banks on Payment Delays and Reductions COVID-19

Tuskys Supermarkets has written to suppliers, banks and landlords notifying them that even just renegotiated payment terms may not be honoured on the agreed timeline, quoting reduced cash flows due to the negative financial impact of coronavirus the business.

According to the retailer, measures taken to curb the spread of the coronavirus such as social distancing and reduced operating hours for lower traffic in its stores have led to the closure of some of its branches and merged others in a bid to stem losses at the individual store level, reducing profits.

Tuskys is now asking landlords to reduce rent for its stores and allow late payment, highlighting the effects of the virus on businesses.

“Despite these efforts, some supplier obligations may be deferred and therefore some of your members have been impacted,” Tuskys chief executive Dan Githua wrote to Kimani Rugendo, chairman of Association of Kenya Suppliers, in an April 30, 2020 letter adding that they ” have communicated individually to these suppliers that their payments will be delayed.”

On the other hand, the retailer has noted that it is committed to protecting the interests of all suppliers who have been delivering sufficient stocks since the first case of the virus was reported in the country in mid-March.