By Paul Koros
The Kenya National Chamber of Commerce and Industry has proposed the enactment of a Late Payments Bill that would protect suppliers, contractors and small businesses from delayed payment by both the national and county governments.
Chairman Kiprono Kittony also implored commercial banks to lower interest rates on loans in order to ease the burden on small and medium enterprises.
The council of governors has on numerous occasions complained about the national government’s perceived laxity or delays in disbursing county allocations. The national government on the other hand has blamed the delays to a myriad of reasons.
The delays in disbursing cash from the national to county governments has seen contractors and suppliers bear the brunt with some of them being cautious about taking up government tenders.
In order to address this, the Kenya National Chamber of Commerce and Industry wants a law enacted that will see entities which delay payments to suppliers incur additional charges for each day defaulted.
Kittony urged commercial banks to lower lending rates to reduce the cost of doing business in the country noting that SMEs in Kenya were paying more rates than any other part of the world.
They were addressing the West Pokot Business Community at Mtelo Hall in Kapenguria ahead of the West Pokot Investment Forum slated for September this year.