Tuskys Supermarket has announced that more than half of its suppliers have signed up for its supplier financing program introduced in 2014, the first of its kind in the country’s retail industry.
The retailer had selected Kenya Commercial Bank (KCB Group) and Diamond Trust Bank (DTB) as the funding provider for the supplier finance scheme to a tune of Sh 3.0 Billion. This means that registered suppliers can choose to be paid early, once the goods have been received into the retailer’s warehouses and invoices cleared for payment.
Tuskys CEO Dan Githua said the initiative has helped improve the cash flow of its suppliers by providing on-demand access to attractively priced working capital.
Daniel Ndirangu, Tuskys CFO told The Kenyan Wallstreet that they recognize the need for innovative working capital solutions that could strengthen the supply chain relationships between the company and its suppliers.
“The successful roll-out of this programme has already had a positive impact for our suppliers since we unveiled the first phase.” Adding that they had witnessed a significant increase in the number of suppliers utilising the program while strengthening the relationship with its key suppliers.”
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