Customers of Tuskys Supermarket have reported being greeted by empty shelves, even as reports of collapse persist.
In the latest development, the Competition Authority of Kenya (CAK) has confirmed investigations into the bank accounts of the retailer over Ksh1.2 billion owed to suppliers.
CAK has is now demanding bank statements, audited accounts, list of suppliers, and their contracts from Tuskys Supermarket management.
Also, the watchdog has also asked the retailer to pay suppliers Ksh1.29 billion by July 16, warning that retailers who fail to pay suppliers risk a jail term.
“Any person who fails to comply with the order of the authority commits an offence. This matter remains under investigations and further orders will be issued as and when merited,” said CAK.
“With this background and our investigations, the Authority has established that Tusker Mattresses Limited is experiencing incidences of abuse of buyer power in the form of delays in payment of suppliers contrary to sections 24A(1) and 24A(5)(a) of the Act,” CAK wrote in a letter to the management.
“(Pay) the sum of Ksh396.2 million owed to suppliers of fast-moving consumer goods (FMCG) within 14 days from June 16, 2020. The sum of Sh499.1 million owed to non-FMCG suppliers within 30 days from June 16, 2020,” ordered CAK.