According to Tuskys CEO Dan Githua they have already began funding the restocking of Nakumatt Village Hypermarket and Nakumatt Ukay in Nairobi.
He added that the suppliers had agreed to the plan as the company aims to finalize a deal for a buyout.
However, CAK director-general Wang’ombe Kariuki has insisted that the agency must approve any partnership deal involving the two parties.
Read: Tuskys Inches Closer To A Possible Merger With Nakumatt
“The moment you start having information regarding your competitor, sharing strategic decisions, and sensitive information you stop being competitors. Competition thrives where you don’t know the strategy of your competitors,” said Kariuki.
Nakumatt has been the target of legal issues and complaints from several of its shareholders and suppliers over heavy debts estimated to be between Sh30 and Sh40 million.
The move by the two retailers could be seen as a clear breach of the Competition Act which stipulates that the Competition Authority of Kenya (CAK) must approve any undertaking with a minimum combined turnover or assets of Sh1 billion and Sh100 million turnover in the target undertaking.
Kariuki says the CAK has not yet received a formal application from the two companies and that the authority would actualize the provisions of the law.
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