Regional retailer Tuskys Supermarket has agreed to pay KSh2.4 billion equivalent to 40 percent of the amount owed to its suppliers over a period of two years.
The retailer owes the suppliers KSh6.2 billion.
“Total trade supplier debt is KSh6.2 billion. As at August 6, 2020, 40 percent of this supplier debt has been rescheduled and the respective suppliers have signed individual agreements to reschedule the debt to periods between eight months and 24 months,” Tuskys in a letter to the Competition Authority on August 7, 2020.
“Having these debts rescheduled and restructured allows Tuskys time to reorganise cash flows and meet supplier obligations.”
Consequently, the suppliers have agreed to spend Ksh 1.2 billion to restock its outlets.
“Several other branch relaunch events will follow the relaunch of Tuskys Greenspan across the country as we begin to regain our footing,” CEO Dan Githua said on Friday during the launch of customer rewards programme dubbed ‘Tuskys Back-to-Back Sale.’
“The coronavirus pandemic had occasioned business deceleration which had in turn impacted negatively on our financial position which we are now progressively restoring with the support of various stakeholders,” he added.
Githua disclosed that suppliers who are supporting the business recovery have been enrolled in a new platform that guarantees prompt payments for stocks supplied.
“Sales registered via the new suppliers’ portal enjoy end to end protection, and the funds can only be used to settle supplier dues on a priority basis,” read a statement seen by Khusoko.
Association of Kenya Suppliers (AKS) CEO Ishmael Bett said members of the association had committed to supporting Tuskys recovery to foster growth in the sector.
“The Association of Kenya Suppliers members are offering support to Tuskys to address issues that can jeopardise relations between suppliers and retailers. We hope that more suppliers will join the Tuskys Suppliers portal,” he said.
Retail Trade Association of Kenya (RETRAK) CEO Wambui Mbarire said “Suppliers and retailers need to come together to formulate a workable platform that does not appear to exploit either party. The rebirth of Tuskys is a good starting point to allow us to relook and solve retail challenges.”
We appreciate the Tuskys Directors, CEOs -Tuskys, @retrakenya & Association of Kenya Suppliers,representative of the Kenya Association of Manufacturers and Banking Partners @DTBKenya, suppliers, customers,the staff and all the attendees for gracing the event.#MyTuskysMyStory ^MC pic.twitter.com/8luTUsqV7t
— Tuskys (@TuskysOfficial) August 14, 2020
Some of the key suppliers on the portal include; PZ Cussons, Menengai Oil, Mjengo Ltd, Aquamist, Anisuma Traders, Bidco Africa, Broadway Bakeries, Chandaria Industries, and Kenchic Limited.
Other suppliers include West Kenya Sugar, East Africa Glassware Mart, Gal Baking, Pwani Oil, Towfiq Kenya, Interconsumer Products, and Premier Food Industries among others.