Tuskys Supermarket, Kenya’s former retail giant, has been placed under liquidation in order to recoup funds needed to pay its creditors. This places the cash-strapped retailer on the verge of losing approximately Kshs 6.0 bn worth of its assets, after having been under financial duress that commenced in 2020. Still, the amount is far short of the Kshs 19.7 Bn owed to creditors by over 100%. Some of the properties anticipated to be lost by the retailer include its headquarters on Mombasa Road, and Tuskys Imara Building in Nairobi’s city center.

 

Tuskys which was once among Kenya’s supermarket giants for over five years, currently has five branches spread in Buruburu, Ongata Rongai, Narok, Athi River, and Nairobi city center, down from 64 branches recorded in 2019 as depicted below. Notably, the majority of the outlets were shut down in 2021, given that FY’2020 marked the onset of its woes. For 2023, so far one outlet has been shut down. The outlet was located along Nairobi’s Kenyatta Avenue:

Source: Cytonn

 

Moreover, this marks the second local retail giant facing collapse after Nakumatt Kenya, due to financial constraints resulting in liquidation despite restructuring attempts. Other supermarkets such as Uchumi and Game Stores have also either collapsed or exited the market in the past citing losses or financial setbacks. It is also worth noting that family woes have contributed to the fall of retailers as well, as a result of poor governance. Consequently, this has weighed down returns from retail centers such as shopping malls, as a result of vacancy rates or rental remittance challenges. Despite the trend, retailers such as Naivas, Carrefour, and Quickmart have been on an expansion spree, taking up new and previously occupied spaces by fallen retailers and thus boosting the performance of retail centers.

 

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