Tuskys Lays Off Employees As Retailer Experiences Drop In Sales, Number Of Customers

One of Kenya’s largest retail chains Tuskys has announced the restructuring of its operations to ensure financial viability.

Tuskys will effective March 19 declare staff working at the Facilities Department redundant as per the Employment Act Cap (40).

The decision was informed by a drop in sales and the number of customers despite the rapid growth of the retail sector, a letter dated February 18 explains.

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“It has become apparent that the company’s performance in the last two years has been on the decline. As such the company has embarked on a process of restructuring its operations to ensure financial viability.

“This has been orchestrated by a drop in sales and in customer numbers even as the Kenyan retail sector continues to experience growth with the entry of Big Multi National players. In view of the above we write to notify you that the list of staff attached overleaf working in our Facilities Department will he declared redundant in a months time effective March 19, 2020 as per the Employment At Cap 140)m” the letter signed by the General Manager Francis Kimani reads.

Kahawa Tungu also understands that employees received termination letters on Wednesday.

Those affected have been asked to collect their February salaries, 1 months salary in lieu of notice, severance pay and leave pay on April 20 at 10.30 am at the human resource manager’s office.

In 2018, Kahawa Tungu lifted the lid on an elaborate plan to cripple the retail giant that involved CEO Dan Githua, Daniel Ndirangu (CFO) and Wamaitha Mukuha (GM Operations).

Then, we reported that Tuskys lacked clear systems and processes to ease business and maximize output and profitability.

The lack of proper systems made it easy for those at the helm of the company to siphon billions of shillings and cause supplies to disappear without a trace.

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For example, Kahawa Tungu reported that one of the directors, Stephen Mukuha siphoned some Sh1.6 billion from the company through his subsidiary companies that are the dominant suppliers of Tuskys Supermarkets.

In Githua’s case, he directed funds obtained from the company to his microfinance, Speed Capital – with at least 7 branches countrywide.

He also has another company, Artemis – recruitment and outsourcing firm – which recruits individuals lucky to join the Tuskys Internship programme.

Githua also sabotaged the installation of a professional team; to oversee the management of the retailer.

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