Tuskys’ suppliers have asked the government to intervene in the matter of payments owed by the supermarket. The request comes less than two weeks after the supermarket warned that it might delay some payments due to the Coronavirus pandemic. Suppliers are still recovering from non-payment after Nakumatt’s collapse cost them KSh 18 billion.
On May 20th, Tuskys issued a statement apologizing to suppliers over delays that came with the restructured payment schedules. Then, CEO Dan Githua said that the company would release payments scheduled in April and May towards June. Additionally, he promised payments for supplies done in May and June to follow as per pre-COVID arrangements.
Read More on: Tuskys Reassures Suppliers on Pending Bills
In response, manufacturers wrote to the Ministry of Industrialization and the competition authority to fast track the repayments. In a letter, manufacturers claim that some payments date back to early in the year. Moreover, they cite unresponsiveness from Tuskys, evident by their low communication.
The Kenyan Association of Manufacturers (KAM) has called Tuskys to provide detailed information regarding the proposed payment plan, including average payment periods.
“We further request an urgent meeting with yourselves in the presence of the Ministry of Trade and Industry as well as the Competition Authority to address this matter with finality,” Business Daily quoted KAM CEO Phyllis Wakiaga.
Last year, the government put in place new regulations that require retailers to pay their suppliers within 90 days.
