Kenyan members of parliament have began to draft new legislation meant to protect farmers and suppliers from big retailers.
According to parliamentary Trade, Industry and Co-operatives Committee Chairman Kanini Kega, suppliers and farmers have almost no bargaining power against the big supermarkets incase of insolvency.
Mr Kanini Kega says his committee is preparing a Bill that will see retail chains operating in Kenya deposit a specified sum in a fund held by the government to ensure suppliers & other creditors are paid should the retailers discontinue operations.
“We must have a threshold of capital for starters deposited as security to act as cushion to suppliers in case a supermarket goes down.” said the MP.
Kanini Kega’s further notes that the legislation will seek to end unfair trading practices, such as late payments by supermarkets and abusive contracts. He proposes that retailers pay suppliers interest on delayed payments. (45 days after delivery) .
Bill to Discourage Importation of goods that can be produced locally
Furthermore, he noted that they are working on a bill meant to discourage importation of goods that can be produced locally. This he said will foster the value addition of locally produced commodities especially agricultural products.
This comes at a time when two of the country’s largest retailers are facing numerous challenges leaving suppliers & other creditors out of pocket.
