This archive report was first published on 17 June 2020.
On June 17, 2020, the Competition Authority of Kenya (CAK) began investigating Tuskys supermarket over a Sh1.2 billion debt owed to suppliers.
The retailer, which boasts the largest chain of stores in Kenya, has been ordered to provide CAK with its monthly bank statements for the past year for all bank accounts related to its retail business by this week.
Shelves at Tuskys stores are running empty as suppliers have stopped working with the retailer until the debt is paid.
Tuskys has admitted to not making payments, but claims it's due to 'delayed' payments. The company's CEO, Dan Githua, had promised to release payments scheduled in April and May by June, but this did not happen.
CAK ordered Tuskys to settle the debt by July 16, threatening hefty actions if the order is not followed.
CAK also discovered that Tusker Mattress had lied about the debt amount, stating it was only Sh884.3 million.
CAK found that Tuskys has been experiencing abuse of buyer power in the form of delays in payment of suppliers, contrary to the Competition Act.
Tuskys has blamed its woes on the COVID-19 pandemic, but CAK's investigation suggests otherwise.
