By JAMES ANYANZWA

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Kenyan family-owned retailer Tuskys Supermarket has signed a Ksh2 billion ($20 million) agreement with an undisclosed Mauritian fund to help shore up its wobbling financial position and restock the struggling business.

The retailer, which is teetering on the brink of collapse, is weighed down by mounting debts, disgruntled unionised employees, fading supplier confidence, and shrinking financial power to replenish essential items on the shelves.

The financing is, however, subject to fulfilling transaction condition precedents, according to a statement it released on Tuesday.

“This funding will help alleviate our current capital constraints impacted by Covid-19 and further reposition the business for increasing stakeholders’ value,” the retailer’s chairman Bernard Kahianyu said.

“We wish to reiterate our commitment to resolve the underlying working capital challenges quickly. This funding will provide the needed impetus to our overall capitalisation journey. The Tuskys Board and management will engage all stakeholders in the coming days to agree on business modalities going forward,” he added.

The retailer had earlier committed to bring on board a strategic investor by July 31, and explore additional funding options to save the collapsing retail giant that is unable to pay off its suppliers.

While the retailer's management have remained mum on the full amount owed to suppliers documents submitted to the Competition Authority of Kenya (CAK)  shows that the retailer had made payments amounting to Ksh2.77 billion ($27.7 million), with the balance to be cleared over a period of four months.

Tuskys has 53 stores and is Kenya’s second-biggest retailer behind Naivas.