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Bad News For Those Who Buy Milk From Tuskys Supermarket

The supermarket chains in Kenya's retail industry continue to become unstable where the biggest names have been toppled by smaller ones in what is considered to be caused by mismanagement of the giant retailers.

New Kenya Cooperative Creameries (New KCC) that has been Tusky Supermarket's major milk supplier are stopping their services for now as the retail chain has not been able to settle outstanding debt owed to the milk producer. The debt is said to be running into millions of shillings.

Competition Authority of Kenya (CAK) has had to intervene after Tuskys alleged low business that has been attributed to the effects of Covid-19. The supermarket chain does not just owe the New KCC only but most of their suppliers who have also cut short their supplies to the supermarket.

Tuskys supermarket exceeded the credit payment period of 60 days prompting the milk supplier to cut short their services to the retail chain. There have although been talks between the two companies to see their partnership in the business resume as was alluded to by Nixon Sigey, the New KCC managing director. 

“New Kenya Cooperative Creameries is in discussion with Tuskys supermarket top management to agree on the most possible way forward for our two firms to continue working together even after we stopped supplies of milk to the retailer,” said the managing director. 

Tuskys and New KCC has a monthly business worth of sh80 million. The two have not revealed however, how much exactly the supermarket owes the milk producer. 

New KCC is keen not lose its revenues as it did when Nakumatt Supermarket went down with almost sh18 billions owed to suppliers where New KCC was one of them. 

Most manufacturers and other suppliers that the supermarket depends on have asked the government to intervene before the retailer reaches a point where it can't pay debts if they continue to accrue. 

Content created and supplied by: DickensNgicho (via Opera News )

CAK Kenya New Kenya Cooperative Creameries Tuskys Tuskys Supermarket


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