This archive report was first published on 17 June 2020.
June 17, 2020 - The Competition Authority of Kenya (CAK) has launched a probe into Tuskys' accounts following allegations that the retailer has defaulted on payments to its suppliers, leaving a debt of approximately Ksh 1.2 billion.
According to sources, Tuskys has been struggling to meet its financial obligations to its suppliers, with many of them cutting ties with the retailer due to the prolonged payment issues.
The CAK has ordered Tuskys to provide its bank account details for the past year, as part of the investigation into the retailer's financial dealings.
Additionally, the CAK has discovered an extra Ksh 400 million in unpaid debts that Tuskys had kept hidden.
Tuskys has cited the COVID-19 pandemic as the reason for its financial struggles, but suppliers are now seeking the intervention of the CAK to prevent further losses.
CAK has given Tuskys a deadline of July 16 to settle its debts, failing which the retailer's executives may face prosecution.
“Any person who fails to comply with the order of the authority commits an offense,” said CAK in a letter to the retailer.
As the investigation unfolds, customers are shifting their loyalty to other retailers, citing the prolonged stock-outs and lack of trust in Tuskys.
