Tuskys Gets Ksh 2 Billion Bail Out From Undisclosed Firm
Kevin Namunwa  |  Aug 25, 2020


p>Struggling retail chain Tuskys claims it has signed an agreement with a Mauritius-based fund for Ksh 2 billion capital injection.

Tuskys had earlier stated that it needed Ksh 2 billion to help it keep afloat. However, it was later revealed that the supermarket chain owed suppliers a total of Ksh 6 billion. Tuskys chairman Bernard Kahianyu says that the Ksh 2 billion it has got from the undisclosed Mauritius firm will be a boost to the retailer.

“This funding will help alleviate our current capital constraints impacted by Covid-19 and further reposition the business for increasing stakeholder's value,” read a statement by Tuskys chairman Bernard Kahianyu.

As much as Tuskys owed suppliers a total of Ksh 6.2 billion, it had agreed to pay 40% (Ksh 2.4 billion) of the amount over two years.

The revelation came after the retailer paid suppliers Sh2.7 billion in June after the intervention of the Competition Authority of Kenya (CAK), which has placed it under its watch list for defaulting on suppliers.

The family-owned retailer is rocked by wrangles among its shareholders with one of the seven siblings having vowed to block an investor deal.

The retailer had said it was looking to raise new capital from a strategic investor in exchange for a majority stake under the rescue bid.

Details of the Mauritius fund are yet to be disclosed and whether a share sale is part of the agreement.