Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Tusky and Nakumatt will now share suppliers and Tuskys' supply chain/FILE

Kenya

Tuskys signs merger deal to salvage struggling Nakumatt

Tusky and Nakumatt will now share suppliers and Tuskys’ supply chain/FILE

NAIROBI, Kenya, Sept 18 – Kenya’s biggest retailer, Tuskys, has signed a merger deal to rescue struggling Nakumatt Supermarket.

Though details remain scanty, Nakumatt will access stock to replenish the empty shelves from Tuskys suppliers based on the goodwill the later has with its partners.

Nakumatt will also use Tuskys’ supply chain as the two retailers look into ways of aligning their operations including management changes that will give Tuskys considerable decision-making rights in Nakumatt.

Industrialization Cabinet Secretary Adan Mohammed had, last week, suggested talks were at an advanced stage for a rescue plan for Nakumatt and Uchumi.

The two retailers have closed over 10 branches in the last six months, including outlets in neighboring Uganda and Tanzania.

Earlier, Nakumatt Managing Director Atul Shah said the supermarket needs Sh77 billion to recapitalize, blaming the government for its woes and then requesting the Government for a bailout, which the government declined.

Interestingly, it is Mr. Shah who tried to mediate between the five sons of Tuskys Founder, Joram Kamau, when an ugly sibling battle threatened to sink Tuskys in 2013.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...