This archive report was first published on 25 August 2020.
On August 25, 2020, Tuskys Supermarket, a troubled Kenyan retailer, received a Sh. 2 billion capital injection from a Mauritius Fund. The name of the fund was not disclosed.
The funding is expected to help alleviate the firm's current capital constraints, which have been impacted by the COVID-19 pandemic. Tuskys' chairman, Bernard Kahianyau, stated in a media statement, 'As previously communicated, we wish to reiterate our commitment to resolve the underlying working capital challenges quickly. This funding will provide the needed impetus to our overall capitalization journey.'
Despite the financial boost, Tuskys has faced significant challenges in recent months. Last week, the supermarket was forced to pay Sh. 15 million out of Sh. 26 million in rent arrears for its United Mall outlet in Kisumu County after auctioneers raided the premises.
However, Tuskys' CEO, Dan Githua, is optimistic about the retailer's future. Speaking during the reopening of the Greenspan outlet, where a customer reward programme was launched, Githua said, 'The restocking has been undertaken in conjunction with leading suppliers who have committed to the retailer on a win-win basis to the tune of Sh. 1.2 billion.'
Tuskys is not the only Kenyan retailer to face financial difficulties. Uchumi and Nakumatt, two of Kenya's most prominent retailers, have already folded.
