CAK Extends More Time for Suppliers to Report Delayed Payments

The Competition Authority of Kenya (CAK) has extended the time for receiving information on late payments by suppliers and manufacturers to enable the determination of disciplinary action against retailers.

Speaking when he hosted Kenya Association of Manufacturers (KAM) top officials in Nairobi, director-general Wang’ombe Kariuki said CAK would also look at new supplier-retailer agreements extending payment timelines beyond the 60–day cap for payments.

“Retailers and suppliers must submit information on outstanding payments by supermarkets or any extended payment periods to facilitate further action,” he said.

KAM vice-chairman Mucai Kunyiha said increasing late payments in the sector were worrying and pushed for policies to ensure smooth cash flows for manufacturers.

The two parties met last week and discussed matters concerning competition compliance and measures to address late payments.

An interim CAK report revealed late payments were largely due to the impact of Covid-19 on the retail sector.

The initial deadline was to expire on May 14 but no new date has been set.