The Principal Secretary for Trade Dr. Chris Kiptoo has called for fair play in the retail sector in the wake of revelations that retailers owe suppliers and manufacturers a whopping Ksh 40 billion in form of unpaid goods and services.
He said that though the contribution of the retail sector to the GDP had risen from 3.6% in 2006 to 8% in 2015, sector had gone unregulated for some time, leading to several complaints from suppliers and manufacturers who claim that some super markets took as long as six months to pay for goods supplied.
Dr. Kiptoo said this when he received a study report commissioned by Kenya Association of Manufacturers, Association of Suppliers in Kenya, Retail Traders Association of Kenya and the State Department for Trade on retail sector prompt payment. . “All stake holders, including members of the public will be invited to make their inputs before the report is finally adopted” said the PS.
He said borrowing from the best international practices, the soon to be launched National Trade Policy provided for the regulation of retail trade to inculcate self-regulation and sanity in the sector.
The PS explained that the government had no intentions of stifling the retail trade sector, but would not hesitate to enlist Competition Authority to reign in on rogue retails who deliberately fail to pay their suppliers.
Suppliers had complained of late payments and issuing of bouncing cheques, de-listing, unjust return of goods, transfer of commercial risk and refusal to receive specifically ordered goods as some of the unfair practices which resulted in unnecessary loses