Retail Code of Practice launched to ensure timely payment of suppliers - KBC

Retailers would be required to pay suppliers within a specific number of days with those who fail to do so facing penalties following the official launch of a Retail Code of Practice.

Trade Principal Secretary Dr. Chris Kiptoo is optimistic that the new Retail Code of Practice would help reduce cases of suppliers going under due to delayed payments while also addressing the issue of mismanagement of supermarkets through self regulation.

Suppliers especially SMEs have been at the mercy of supermarkets when it comes to payment for goods supplied.

Some supermarkets have been accused of using cash meant for paying supplies to trade or expand their businesses and in worse situation, retailers going under with suppliers cash.

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This could however be coming to an end after retailers, manufacturers, suppliers as well as the government have agreed to implement a Retail Code of Practice that advocates for self-regulation.

Under the new code, retailers who fail to honor payment to suppliers within the specified period face sanctions that would be decided by the proposed seven-member dispute resolution committee that draws membership from retailers, manufacturers, suppliers, Council of Governors and the Ministry of Trade.

The retail sector now has a code of practice and is governed by pieces of laws scattered across different sectors. However, the National Assembly committee on trade has pledged to work with stakeholders to address legal and policy issues.

Noting that Kenya is optimistic that the African Union member states will make the 22 member states needed to ratify the  African Continental Free Trade Area Agreement, Dr. Kiptoo said once in place the treaty will secure Kenya a wider market for her goods which currently stands at 41%.

 

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