November 25th 2017

Society / Governance

Govt forms committee to sensitise Kenyans on paying their debts

“Late payment has been a huge problem between retailers and suppliers. Development of shared vision and guiding principles of good practices will play a key role in solving such issues,” said Dr Kiptoo.

By Free Press Reporternewsdesk@kenyafreepress.comWednesday, 12 Oct 2016 13:23 EAT

KAM head of Corporate Finance, Zipporah Maina; KAM CEO, Phyllis Wakiaga; Dr Chris Kiptoo, then working for TradeMark East Africa, and TMEA Kenya Programme Manager Simon Konzolo at a past meeting. (Photo: Courtesy: KAM website)

Kenyans who do business with the government usually complain of late payment by state agencies. However, according to manufacturers, the culture of late payment is entrenched in Kenya and affects all businesses.

On Monday, officials of the Kenya Association of Manufacturers moved the principal secretary for Trade, Dr Chris Kiptoo, to form a taskforce for promotion of good business practice between suppliers, retailers and manufacturers with a key mandate to set policies on late payment.

"The aim of the task force is to address concerns raised by suppliers, retailers and manufacturers on crucial matters such as late payment, building synergies that facilitate ease of trade and developing a shared vision for all stakeholders," said a statement from KAM.

Speaking at the meeting with the manufacturers, Dr Kiptoo stated that the task force will provide a platform for developing a framework by which late payment culture in Kenya among other issues will be addressed. 

“Late payment has been a huge problem between retailers and suppliers. Development of shared vision and guiding principles of good practices will play a key role in solving such issues,” said Dr Kiptoo.

The chairperson of KAM Flora Mutahi noted that task force will guide the team in mitigating the challenges facing suppliers and retailers. “As KAM, our fears are based on the structural weaknesses existing in the Kenyan wholesale and retail sector which affect our efficiencies to make payment. This task force can address these issues through clear policy and guidelines,” she said.

The taskforce is composed of representatives from the ministry of trade, KAM, Retailers Association of Kenya (RETRAK), Association of Kenya Suppliers among others. A top Trade ministry official told the Kenya Free Press that in addition to policy formulation, a key function of the task force would be to sensitise Kenyans on the need for people to pay their debts on time.

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