Woes facing Kenya’s retailer Tuskys seem to be far from over after New KCC opted to stop supplying the retailer with milk over accumulating debts.
According to New KCC, Tuskys has failed to settle pending bills amounting to millions of shillings for milk supplied and sold but no cash was remitted.
“We are at the moment in discussion with the firm to agree on the way forward after we stopped supplies of milk to the retailer,” said Mr. Nixon Sigey, the Managing Director of New KCC.
New KCC says that it has waited for its payment for over 60 days, which their credit limit and that Tuskys has done little to settle the debt.
Tuskys has been going through financial turmoil, blaming to slow business environment as a result of the ongoing Covid-19 that has affected numerous businesses across the country.
The retailer has failed to pay suppliers on time as well as for settling its rent on time. Some suppliers have called on the government to intervene to help them get their money from the retailer.
“We have been supplying clothes to Tuskys for years. It shocks me that they have been selling the clothes but not paying suppliers of the same. Where is the money going?” asked one supplier who did not want to be mentioned.
Tuskys script seems to be the same that Kenyans witnessed with other retailers such as Nakumatt and Uchumi Supermarket before they collapsed. Currently, senior managers and directors of the retailer are being investigated for disappearance of money from the retailer’s accounts.
At one time, Tusksys offered to bail out Nakumatt Supermarket when it was hanging on a shred of thread. When Nakumatt finally kicked its last, Tuskys took over most of the spaces that Nakumatt occupied. Analysts have blamed Tuskys’ rapid expansion without proper planning.