Buyout bid blamed for Tuskys row

Six Tuskys Supermarket directors are now blaming troubles at Kenya’s second largest retail chain on an international supermarket they claim wants to buy them out.

In a statement published in local newspapers on Thursday, the directors said the current feud has been precipitated by a conspiracy by an international supermarket chain.

They claimed it is using some of the family members in trying to take over operations at the local supermarket through underhand means. Read (Another director joins Tuskys suit)

Although they did not name the supermarket, it is understood that it has its roots in the United Kingdom and has been looking for possible acquisitions in South Africa and Kenya to enter the African market.

The six directors are Mr John Kago Kamau, Mr Sammy Gatei Kamau, Mr Stephen Mukuha Kamau, Mr George Gashwe Kamau, Ms Mary Njoki Kamau and Mr Frank N. Kamau.

On Thursday, the directors were summoned to the High Court where the proceedings were held in camera.

It is, however, understood that the judge advised them to find alternative means of sorting out their differences to avoid jeopardising operations of the supermarket giant.

This came after Mr Yusuf Mugweru Kamau, a seventh director, and his niece Ann Gatei Wamaitha filed a complaint claiming its three directors had defrauded the supermarket of Sh1.6 billion.

“We are aware, for instance, that there is an international supermarket chain that has expressed an open interest in acquiring Tuskys to enable it to penetrate the regional retail industry, having attempted to do so in the past and failed …. The firm’s machinations have been manifested in underhand dealings, dirty tactics and sowing of conflict among some of the directors to lay the foundation for a forced takeover,” says the statement.

The directors further claim that the international supermarket chain has targeted Tuskys due to its “strong and trusted brand name, a cross-border branch network and state-of-the-art systems that would allow it to integrate its operations seamlessly with ours”.

However, a source familiar with the goings-on at the family business but preferred not to be named said the “so-called advertisement” does not list the signatures of the directors neither does it mention any names for authenticity purposes.

The source further said the statement was not endorsed by some of its directors, who are also affected by the situation at the retail giant.

Neither Mr Yusuf Mugweru Kamau nor Ms Anne Gatei Wamaitha has signed the statement put out by the other six directors.

“The advertisement cannot be true. It is just a diversion from the real issues surrounding the possible diversion of about Sh1.6 billion,” the source said.