This archive report was first published on 25 November 2019.
As of June 2019, the Kenyan government's delay in paying its bills had resulted in a staggering KSh100 billion in pending payments to suppliers. This crippling delay has had a devastating impact on businesses across the country.
The Kenya Association of Manufacturers (KAM) has expressed its deep concern over the matter, citing low liquidity in the market as a major contributor to the poor performance of businesses. The association has also highlighted the issue of delayed VAT refunds, which has further exacerbated the problem.
Despite a presidential directive to pay all pending bills by November 30, 2019, the situation remains dire. KAM has also complained about the duplication of regulations and 'unfriendly' implementation of tax measures, which it believes are slowing down growth in industries and the supply chain.
However, KAM remains optimistic that the government will follow through on its recent assurance to address regulatory issues. The association is hopeful that this will bring much-needed relief to businesses and help to stimulate economic growth.
