Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Tuskys pays suppliers Sh2.7bn after CAK’s intervention

NAIROBI, Kenya, Jul 21- Tuskys supermarket has now paid its suppliers Sh2.77 billion, to beat the deadline that was set by the Competition Authority of Kenya.

According to the Competition Authority of Kenya, the retailer presented documents showing that they had paid what it owed suppliers after it was reported that the retailer was failing to meet its debt obligations.

“Tuskys supermarket has provided documents indicating that it made payments to suppliers amounting to Sh2.77 billion in June 2020 as per Authority’s order,” reads part of the Communication Authority statement.

“Over the past 30 days, the authority has held four meetings with Tuskys to review the documentation submitted and interrogate its proposed debt settlement plan,” CAK director-general Wang’ombe Kariuki said in a statement.

The competition watchdog had previously ordered Tuskys to submit a debt repayment plan for what it owed its suppliers for a period of more than 90 days where it was expected to pay while giving priority to distressed suppliers and those supplying Fast-Moving Consumer Goods.

Additionally, Tuskys was to give CAK records of all its debts and financial statements and records, sales forecasts, among others.

The retailer has now informed CAK that it is also exploring other funding options which includes seeking a strategic investor by July 31.

“ 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 retail chain in the last months has been operating with close to empty shelves.

Advertisement. Scroll to continue reading.

Tuskys now says it has negotiated for moratoriums and extensions of its facilities with its lenders and that it was in talks with key suppliers to ensure continuation of supplies.

CAK had earlier revealed that after analyzing the debt portfolios of 25 major retailers four of them were in debt distress, but three were working on getting back on track.

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...

Headlines

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

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...

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

Coronavirus

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

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...