Naivas and Quickmart: BY EPHRAIM NJEGA: The other day I went to one of the last few remaining branches of Tuskys Supermarket in the Nairobi CBD. I wondered how the people who brought down such a business sleep soundly at night.
When I came to Nairobi in 1995 the Tuskys brand was not there but its predecessor was there. Over the years the Supermarket grew fast, far and wide.
I remember seeing a Tuskys branch in Uganda in 2018. I thought this would be the next Kenyan multinational. I never imagined that two years later it would be an unrecognisable shell.
Given the recent failure of retailers in Kenya, it is obvious that this sector needs tighter regulations.
When Nakumatt pioneered the asset light model of running supermarkets in Kenya we thought it was a genius move. Little did we know that this invention would come to haunt us.
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This model of running supermarkets where the owners own no assets needs rethinking. If we must continue with it then supermarkets should be regulated like banks.
The owners shouldn’t be allowed to carry risks that are not commensurate to their investment. There must be a way of protecting suppliers and other creditors.
Look at how Naivas and Quickmart are expanding. It is like history is repeating itself. This kind of history shouldn’t be allowed to repeat itself.