The Competition Authority of Kenya has launched a probe into Tuskys accounts after the chain is said to have sat on close to Kes 1.2 billion indebted to suppliers.
Tuskys for a while now has gotten into the bad books of its various suppliers after breaching on the terms of contracts that majorly touch on purchases.
Going for months without working on pending invoices, the majority of suppliers have cut their partnership with the retailer until their payment issues are resolved.
This has affected supplies, customers detesting the prolonged stock-outs on a wide range of products that have hit the chain’s branches.
The CAK has now ordered Tuskys to serve it with its bank accounts details for the last one year.
With Ksh 1.2 billion being in the public domain as the amount owed to partners, CAK has also established some extra Ksh. 400 million of debts which the retailer had kept under the wraps.
The retailer has hidden behind the Covid-19 pandemic pointing at the implications resulting from it (the pandemic) as the main reason for its current predicament.
Already having suffered bad debts courtesy of former retail giants like Nakumatt and Uchumi, suppliers are now keen not to find themselves cornered in the situation again, already seeking the intervention of the CAK which has from the onset shun kids glove in handling Tuskys Ltd.
The period between July 1 and July 16 is the one Tuskys has been given (by CAK) to settle its debts, or else its executive is prosecuted if the directive is not met and without compelling reasons.
“Any person who fails to comply with the order of the authority commits an offense,” said CAK in a letter to the retailer. “This matter remains under investigations and further orders will be issued as and when merited,” reads a statement from CAK.
With the existing tides, customers are jaded and fearful, shifting their tents to other competition.