The Competition Authority of Kenya (CAK) has put four Kenyan supermarkets on the watch list following complaints by suppliers.
4 supermarkets on Gov't watch-list over delayed payments
Crackdown on supermarkets
According to a statement from CAK, the four supermarkets have failed to honour payment agreements for over 90days.
The authority further outlined that three of the retailers had worked out a payment plan with their suppliers to complete the payments within 60 days.
"Out of the 25 retailers, only four retailers were found to have delayed payments exceeding 90 days. Three of the four retailers presented payment plans and have continuously reduced their debt portfolio, aiming to settle the outstanding amounts within the next 60 days. The Authority will conduct compliance checks after this period lapses
"Further, the Authority has issued prudential and reporting orders to one retailer who, after several requests and extensions, failed to present a payment plan or evidence of negotiations with the affected suppliers," CAK Director General Wang’ombe Kariuki stated.
The statement from CAK comes in the wake of growing concerns over the stability of one of the giant retailers, Tuskys supermarket.
According to a letter written to Kenya Association of Manufacturers (KAM), Tuskys management has been struggling to meet its payments during the Covid-19 pandemic.
"We apologize for the restructured payments of some suppliers with respect to their trade terms which started in April as a result of Covid-19.
"However we have continued with repayments scheduled in April progressively and have progressively released them in May and will continue the same in June. All these were impacted by Covid-19 that took a toll on the foot-fall of the retail sector across the board," the letter read in part.
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