Delay in payment of bills by the government is negatively affecting businesses. According to Kenyan manufacturers, there is low liquidity in the market which has resulted in massive lay-offs by companies and poor performance by businesses.
The pending bills amount to billions of shillings. As of June 2019, counties owed suppliers more than KSh100 billion.
In addition, investors and businesses are suffering due to delayed VAT refunds.
KAM’s complaints follow a presidential directive that pending bills should be fully paid by 30th November 2019. KAM has also complained of duplication of regulations and “unfriendly” implementation of directives especially tax measures as reasons for slowing down growth in industries and supply chain.
KAM is optimistic that CS Fred Matiang’i will follow through his recent assurance on the government’s commitment to addressing regulatory issues.