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Thousands set to lose jobs if Tuskys collapses

Purity Kinuthia

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Iconic Retail shops in Kenya have been closing down and rendering many jobless. The same fate may soon face Tuskys workers as the supermarket is on the verge of collapsing.

Uchumi and Nakumatt are retail shops that were famous in Kenya but are now gone and forgotten. Fear is Tuskuy may be heading the same direction. What lead the downfall of these retail shops is mismanagement, high level of thievery of both the cash and commodities, and greed for expansions to gain dominance.

This is not far from Tusky’s case. What is ailing the company is the mismanagement of funds. Top officials have been accused of literary stealing from the supermarket chain money with a 1.6 billion shillings scandal case still in Court.

With over 60 shops in Kenya and Uganda, Tuskys has made its stretch in East Africa. It goes without doubt that they did not have a clear strategy while carrying out expansions. Tuskys rush to purchase the falling Giant retail shops to gain dominance in Kenya and East Africa.

However, what seemed a great achievement, is now a contributing factor to it collapsing. Several branches are temporarily shut down including three of its branches in Nairobi, Kitale, and Mombasa and sent home workers.

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In 2013, Tuskys entered into a private deal with Ukwala Supermarkets a rival chain, whereby Tuskys would buy six Ukwala stores in the Nairobi area.

The two chains did not consult the Competition Authority of Kenya (CAK), as required by law. Consequently, the two chains were fined a total of KES:5.3 million (about US$62,000). The two stores were later closed by CAK for underperforming.

Scuffles between the kins of Joram Kamau the co-founder of Tuskys is also to blame for the demise the company is facing. With each of the seven cashing out cash at the slightest chance they get, to set private businesses.

Most of their branches are having empty shelves and lacking basic items while they are still in dept to their suppliers

Massive layoff and pay cuts are underway considering their current predicament. Covid-19 is a thorn in the flesh causing the situation to be dire. Dan Githua, Tuskys CEO has already warned that the company is having a severe cash flow crisis. More than 6000 people will lose their means of livelihood if these supermarket collapses.

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