This archive report was first published on 16 June 2020.
On June 16, 2020, the Competition Authority of Kenya (CAK) announced an extension of the deadline for suppliers and manufacturers to report late payments to retailers.
The initial deadline, set for May 14, has been pushed back without a new date being set.
CAK Director-General Wang'ombe Kariuki stated that the authority would also review new supplier-retailer agreements that extend payment timelines beyond the 60-day cap.
"Retailers and suppliers must submit information on outstanding payments by supermarkets or any extended payment periods to facilitate further action," Kariuki emphasized.
The move comes after a meeting between CAK officials and Kenya Association of Manufacturers (KAM) representatives, where they discussed competition compliance and measures to address late payments.
KAM Vice-Chairman Mucai Kunyiha expressed concern over the increasing number of late payments in the sector, pushing for policies to ensure smooth cash flows for manufacturers.
The extension may have been influenced by suppliers' reluctance to report retailers who offer them a one-stop regional market, fearing victimization.
According to an interim CAK report, late payments were largely due to the impact of Covid-19 on the retail sector.
