This archive report was first published on 6 May 2020.
On May 6, 2020, the Competition Authority of Kenya (CAK) Director General Wang'ombe Kariuki announced the start of an investigation into supermarkets that delay payments to suppliers beyond a 90-day credit period without justification.
The investigation aims to determine whether supermarkets are abusing their buyer power, as prohibited by the Competition Act, which is designed to protect suppliers.
According to Kariuki, persons found guilty of abusing buyer power face a jail term of not less than five years or a fine of at least Sh10 million.
The Kenya Association of Suppliers has confirmed that its members have raised concerns over delayed payments by retailers, with some suppliers owed Sh18 billion by the collapsed Nakumatt and over Sh5 billion by Uchumi.
The CAK established a Buyer Power Department in 2018 to address concerns over delayed payment of supplies, which has led to supermarkets expanding with money meant for supplier payments.
