Company faces closure

One of the leading motor vehicle dealers in the country, TATA Africa Holdings, faces closures of its Naivasha Branch following a financial row with one of its main local dealers.

The Company whose Headquarters is in South Africa has been accused of failing to pay millions of shillings to Dragon Motors, which is the company’s dealer in Naivasha, Narok and Nyandarua Counties.

This came even as the dealer’s salesmen went on strike demanding over Sh3million in commission arrears for the sale of over 150 Units that they had sold in the last two years.

Managing Director (MD) Dragon Motors, Evans Chege, told the press that the company had flouted the contract terms with them after it started delaying payment of commissions to the dealer despite selling tens of motor vehicle and their spare parts on monthly basis.

Chege claimed that the local dealer was awarded the best dealer in the region for2017 but despite their efforts, the company was yet to pay the salesmen their dues and other charges amounting to over Sh.3 million which he said had adversely affected sales of the company’s brands.

We have been selling over 100 units every year but this year we have managed only three due to failure by the new management of TATA to settle their debts, he said.

The MD said that they were planning to seek legal redress in the next two weeks if the company which has eighteen braches countrywide failed to clear their debt.

The dealer Senior Sales Manager, Geoffrey Gitahi, said that already they had been forced to lay off some of their staff due to non-payment by the motor company despite demand for the brand growing high among farmers in Naivasha, Narok and Nyandarua.

Contacted on phone, TATA MD, Naresh Leekha, admitted that there was a row between the company and the dealer but said that the company which is a multi-national had dealers all over the continent and promised that the company would resolve the issue soon.

Source: Kenya News Agency