This archive report was first published on 12 June 2020.
As the COVID-19 pandemic continues to ravage the world, many businesses are struggling to stay afloat. However, for Tuskys, a retail giant in Kenya, the pandemic has been the final nail in the coffin. The company, which was once a strong competitor to Nakumatt, has been teetering on the brink of collapse for months.
According to analysts, the collapse of Tuskys can be attributed to the company's poor management practices. CEO Dan Githua has been accused of engaging in bad business practices, including exploiting the company's family-owned structure for personal gain.
One of the most egregious examples of Githua's mismanagement is the introduction of an internship program at Tuskys. The program, which was touted as a way to provide young people with valuable work experience, was actually a well-crafted scheme to lower the company's labor costs. The interns were used to do the work of full-time employees, who were then sacked under unclear circumstances.
Employees who spoke to Kenyan Business Feed alleged that Githua has a history of hounding out professionals who joined the company after 2015. He would exploit the lack of proper systems at Tuskys, where frequent reports of orders not being fully delivered or supplies not matching what was ordered soon became a normal occurrence.
As the company's financial situation continued to deteriorate, Githua introduced a 'anti-theft mechanism' that blamed and penalized the intern-filled staff for theft. The mechanism was a clear attempt to deflect attention from the company's own mismanagement and corruption.
Despite the government's efforts to intervene, Tuskys continues to struggle. The company's suppliers have called on the government to help, fearing that the worst will happen like it did with Nakumatt.
