Tuskys has seen some delays in payments to suppliers, attributing it to low business as a result of the Covid-19 pandemic, prompting the Competition Authority of Kenya (CAK) to intervene.
The milk firm stopped the supplies after the company exceeded its credit payment period of 60 days.
New KCC managing director Nixon Sigey said they are in negotiations with the retailer.
New Kenya Cooperative Creameries (New KCC) has stopped supplying milk to retail chain Tuskys Supermarket over non-payment on deliveries running into millions of shillings.
New KCC cited high debt on the account of the retailer for halting their supplies of all types of milk to Tuskys.