23 C
Kenya
Monday, August 10, 2020

Tuskys: We need Sh. 2 billion to survive

Must Read

Michael Joseph speaks on his life, 4 marriages, successes, failures

Michael Joseph Biography: Michael Joseph is the new board chairman at Safaricom. He took over from long serving chair...

All teachers, police, civil servants to take salary cuts

Civil Servants Salaries: Teachers, police officers and all civil servants in Kenya are set to take salary cuts. The...

Naivas makes Sh. 6 billion after selling stake to World Bank’s IFC

Naivas Supermarket has entrenched its position as the leading local retailer in Kenya. This follows the successful sale of...

Tuskys News: Tuskys Supermarket is grasping on straws and needs Sh. 2 billion immediate capital injection to survive.

This has been revealed through a board meeting of the retailer’s invest vehicle known as Orakam Holdings.

“Tuskys’ current financial position is very weak and may not support the business for much longer. Tuskys requires immediate capital injection amounting to Sh. 2 billion,” the directors of the investment vehicle were told during a meeting that was held on June 30. This board meeting was attended by sibling owners Stephen Mukuha, Sammy Gatei, Yusuf Mugweru and George Gachwe, who own a 17.5 per cent stake each in the retailer, and John Kago, Mary Njoki and Kenneth Njeri, who each hold a 10 per cent stake.

Caroline Oloo: What I learnt after investing Sh. 180,000 in chicken farming

It has also been revealed that the Diamond Trust Bank has extended the retailer’s credit facility. This is to allow for the new funds to be raised.

“While Tuskys informed the Competition Authority of Kenya (CAK) — which is concerned about the retailer’s mounting supplier debts—that it will close the equity deal by end of July, the shareholders were told the share sale could delay to December,” a report that appeared in the Business Daily said.

Last week, a fresh sibling fight emerged to throw the planned sale of a majority stake to a strategic investor. This is after the fourth born in the family of seven announced that he will block the proposed majority stake sale that is aimed at rescuing the retailer from collapse.

Mr. Mugweru said that the wrangles that have dogged the retailer for years now are yet to be resolved. “They reached out to us last Sunday to support the share sale, but we have declined unless past problems are resolved,” he said through his lawyer, Philip Murgor.

Nation newspapers get new look as NMG turns into digital media company

His main bone of contention is some Sh. 1.6 billion whose whereabouts he says is unknown. He is also demanding a forensic audit of the retailer’s accounts covering the past eight years. In May 2016, two brothers and co-owners of Tuskys were charged with theft of Sh. 1.64 billion from the retail chain. Stephen Mukuha and George Gachwe were charged with five counts of theft and set free on a cash bail of Sh. 1 million or Sh. 3 million bond each. The duo was accused of stealing the money “on diverse dates between 2002 and 2012. In November 2013, though, the High Court dismissed the case and ordered the siblings to settle the matter out of court. Tuskys News.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

180,544FansLike
11,005FollowersFollow
147FollowersFollow
274SubscribersSubscribe
WhatsApp
Telegram

Latest News

Covid-19 hitting Kenya’s small businesses hard, says Facebook report

More than a third of small businesses on Facebook in Kenya have been forced to shut down as a...

Moi family’s Intercontinental Hotel shuts down, sacks all employees

The InterContinental Hotel has shut down its operations in Kenya. The hotel has also sacked all employees. The hotel’s general manager Oliver Geyer told...

Pain of finding out my hubby was a garbage collector not JKIA employee

Imaging finding out that your spouse is a garbage collector while all along you have believed he is a JKIA employee? Well, this is...

UK billionaires partner with Kenyan firm to start new sports betting site

Triple5bet: Kenya’s sports’ betting is headed for interesting times following the entry of a new company with backing from billionaire British investors. Triple5bet, which will...

Michael Joseph speaks on his life, 4 marriages, successes, failures

Michael Joseph Biography: Michael Joseph is the new board chairman at Safaricom. He took over from long serving chair Nicholas Ng'aNg'a who has gone...

More Articles Like This