The Competition Authority of Kenya (CAK) is investigating Tuskys (Tusker Mattresses Limited) after multiple claims of delayed payments to its suppliers. Despite a drop in sales due to COVID-19, Tuskys has promised to pay its supplies in the next 4 months.
For several months now, shoppers’ have complained of missing goods on retailer shelves after various suppliers stopped supplying the company. The new KCC (Milk processor) is one of the companies that stopped its supplies to Tuskys claiming unpaid debts and in response; Tuskys presented a plan to settle the remaining debts in 4 months.
CAK has also issued an order to (Tuskys), requiring them to submit records of total debts owed, financial statements and, sales forecasts. “We are monitoring development on shareholders’ plans to seek several funding options, including seeking a strategic investor by 31st July.
We shall also conduct compliance checks on a weekly basis to ensure adherence to the presented debt settlement plan. This matter still remains under investigation and further order by CAK will be issued.” CAK Manager said. Suppliers who have not yet presented their matters to the CAK are advised to do so as soon as possible.