Tuskys Supermarket: The good, The Bad, The Ugly in the Kago Family Business

The case discusses the rise and fall of the Kago family as founders and owners of Tuskys (formerly known as Tusker Mattresses) a business that started as a small retail store selling mattresses in Rongai, and later diversified to groceries and other consumer goods, on the outskirts of Nakuru Town located in the Rift Valley in East Africa. The supermarket chain was started by Mzee Kago, and later joined by his five sons, who helped grow the business to a leading retail store in Kenya and beyond. The exit of Mzee Kago in the early 2000s, and his passing on in 2002 dealt a blow to the family. However, the business seemed to be chatting and in good hands, as Sitivio took the reins of the family business. For the next decade, Tuskys enjoyed a growth period that rivaled their competitor Nakumatt supermarket, which was the leading retail chain both in assets and market reach. However, trouble started in 2012 when one of the siblings Yosefu, Director of Sales and Marketing, accused his brothers Sitivo, the managing director and Gachiwe, of financial mismanagement and fraud. Yosefu alleged that the two siblings had siphoned over KES 1.64 billion ($20.88 million) and transferred to subsidiaries and privately owned businesses without the knowledge of the directors. These accusations did not go well with Mr Sitivo, and when his brother failed to withdraw a case he had filed seeking the courts and criminal investigation departments (CID) to investigate the allegation, he punched him in the face. The battles for control among the siblings went full throttle after this incident. Any efforts to reconcile the siblings failed. Several attempts were made to rescue the leading retailer but the capital injection in the form of merchandise from the suppliers and efforts to bring investors failed. At the press conference, Mr Sitivo admitted that the Kago family has contributed to some of the woes that have faced the supermarket chains. But the question is, will the siblings be able to bury the hatchet to save the family business?