One of Kenya's most trusted commercial vehicle manufacturers could be shut down - here's why
A number of staff have been laid off owing to the crisis being faced by the company
The firm, whose head office is located in South Africa, has been accused if failing to pay millions of shillings to Dragon Motors, the company’s dealer in Naivasha, Narok and Nyandarua counties.
This has adversely affected the company's operations with the dealer’s salesmen staging a strike over Sh3 million in unpaid commission arrears for the sale of about150 units in the last two years.
“We have been selling more than 100 units every year but this year we have managed only three because of failure by the new TATA management to settle their debts,” said Dragon Motors managing director Evans Chege.
He said they were planning to seek legal redress in the next two weeks if the company, which has eighteen branches countrywide, fails to clear its debt.
The company has been forced to lay off some of their staff due to non-payment by the motor company despite growing demand for the brand among farmers in Naivasha, Narok and Nyandarua.
TATA MD Naresh Leekha admitted that there was a row between the company and the dealer but said the issue would be solved soon.
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