Crown Paints has suspended direct sales arrangement with counties, citing huge payment delays that have threatened to send the firm into cash flow constraints.
The firm, which is listed on the Nairobi Securities Exchange, has now resorted to supplying their products through dealers. This will, hopefully, protect it from the huge delays in payments.
Despite the President’s directive to all counties to clear all pending bills before the start of the current financial year, counties have continued to accumulate approximately Kshs 108.4 billion in claims from contractors and suppliers.
Crown Paints (Kenya) PLC, which was established in 1958 with operations in Kenya, Uganda, Tanzania and Rwanda, has grown to a company with an annual turnover of KShs. 7.3 billion in 2017 producing 2 million litres of paint per month and employing over 1,000 staff members.
See Also:
