This archive report was first published on 15 July 2020.
Published on July 15, 2020, by Gerald Andae.
Kenya's dairy industry is facing a debt crisis after New Kenya Cooperative Creameries (New KCC) stopped supplying milk to retail chain Tuskys Supermarket over non-payment of millions of shillings.
The milk firm cited high debt on the account of the retailer for halting their supplies of all types of milk to Tuskys, exceeding the 60-day credit payment period.
According to Nixon Sigey, the managing director of New KCC, the company is in negotiations with the retailer 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 negotiations, New KCC has cut down on milk supplies to Tuskys, with the company's monthly business worth Sh80 million with the retailer.
Other suppliers have also expressed concerns over the delays in payment, with some cautiously supplying the retailer with their goods to avoid huge debts.
Manufacturers have requested the government to intervene and oversee the payment of money owed to Tuskys supermarkets' suppliers to avoid a full-blown debt crisis.
On Monday, the Competition Authority of Kenya (CAK) ordered Tuskys to settle the Sh1.29 billion owed to suppliers by July 16.
