Tuskys to acquire Ukwala Jogoo road branch

NAIROBI, KENYA: The Competition Authority of Kenya has approved the proposed acquisition of the business and assets of Ukwala- Supermarket Branch on Jogoo Road, Nairobi by Tusker Mattresses Limited.  

This is according to a public notice appearing in a Gazette Notice No. 6461, dated 15th September, 2014 and signed by the Authority’s Director General Wang’ombe Kariuki. 

The competition watchdog has given retail chain Tuskys the go-ahead to acquire and operate the Jogoo Road branch of its rival, Ukwala Supermarkets. The Competition Authority of Kenya said the two firms could go ahead with the transaction but it excluded Ukwala’s five branches that were part of the original takeover deal. 

“In exercise of the powers conferred by section 46 (6) (a) of the Competition Act, the Competition Authority of Kenya has approved the proposed acquisition cited herein conditionally, and allowed for the acquisition of the business and assets of only the Ukwala Supermarket branch on Jogoo Road, Nairobi, by Tusker Mattresses Ltd,” the notice said. 

Tuskys supermarket had earlier intended to take over six Ukwala Supermarket outlets. They included stores on Hakati Street, Ronald Ngala Street, Jogoo Road, Haile Selassie Avenue, and the two branches on Tom Mboya Street. 

However, the watchdog declined to approve the take-over, saying that the companies were engaging in “horizontal restrictive trade practice.” 

The two firms were fined Sh5.3 million earlier in the year for engaging in unfair trade practices. 

Considered the second largest retail chain after Nakumatt, Tusker Mattresses Limited is a private company which begun in Nakuru as a family owned business ten years ago. In 2007, it re-branded to Tuskys. As at February 2014, Tuskys had expended to 52 outlets spread all over the country.

Over the years, Tuskys has in addition to providing conventional supermarket services embarked on providing in-store bakeries, butcheries, whole milk dispensers, water dispensers and a wide range of fresh fruits.