This archive report was first published on 26 August 2020.
On August 26, 2020, Tuskys, a supermarket operator, announced that it had signed a deal with a Mauritius-based private equity firm to secure a Sh2 billion short-term debt facility.
The funds will be used to stabilize the company's operations and make it more attractive to strategic investors it is courting.
According to the company's chairman, Bernard Kahianyu, the funding will help alleviate the current capital constraints impacted by Covid-19 and further reposition the business for increasing stakeholders' value.
However, details of the loan agreement, including the interest rate, repayment period, and whether it is secured, were not disclosed.
Tuskys has been struggling to repay its bank loans and has approached the lenders to restructure the debt.
The company owes suppliers a total of Sh6.2 billion, with an agreement to pay 40% of the amount (Sh2.4 billion) over two years.
Tuskys is being monitored by the Competition Authority of Kenya (CAK) after it defaulted on suppliers, resulting in stockouts and closure of some of its branches.
