This archive report was first published on 15 July 2020.
On July 15, 2020, New Kenya Cooperative Creameries (New KCC) halted milk supplies to Tuskys Supermarket, citing unpaid debt.
The decision was made after the retailer exceeded its 60-day credit payment period, with New KCC citing high debt on the account of the retailer.
Tuskys has faced delays in payments to suppliers, attributing it to low business as a result of the Covid-19 pandemic, prompting the Competition Authority of Kenya (CAK) to intervene.
According to Nixon Sigey, New KCC managing director, the company is in negotiations with Tuskys to agree on the terms of resumption in supplies.
“We are at the moment in discussion with the firm to agree the way forward after we stopped supplies of milk to the retailer,” said Mr Sigey.
Despite the halt in milk supplies, other suppliers are still cautiously supplying Tuskys with their goods, but have cut down on quantities to avoid huge debts.
